The UK's biggest lenders have agreed to set up a new body to improve standards and the reputation of the banking industry.

Plans for a Europe-wide tax on banks has won overwhelmingly support from MEPs - and triggered a new attack on British Chancellor George Osborne for not taking part.

A group campaigning for new taxes to tackle poverty and climate change staged a protest outside a bankers’ meeting today, calling on the British government to rein in the “out of control” banks.

Supporters of a Europe-wide tax on banks have condemned the UK’s failure to take part as “untenable”.

Insurgents killed two members of Nato’s mission to Afghanistan in the south of the country today, the multinational force said.