Stella Creasy has suffered a blow to her campaign to tackle legal loan sharks after her amendment to the Finance Bill was defeated.

The Labour amendment, which would have given the Financial Conduct Authority given the power to cap the cost of credit, was defeated by 266 votes to 225.

Earlier today Ms Creasy, who has been campaigning on this issue for many months, warned in an exclusive PoliticsHome opinion piece that the Government could not “plead ignorance” about the impact of short-term loan companies.

Stella Creasy has suffered a blow to her campaign to tackle legal loan sharks after her amendment to the Finance Bill was defeated.

The Labour amendment, which would have given the Financial Conduct Authority given the power to cap the cost of credit, was defeated by 266 votes to 225.

Earlier today Ms Creasy, who has been campaigning on this issue for many months, warned in an exclusive PoliticsHome opinion piece that the Government could not “plead ignorance” about the impact of short-term loan companies.

The taxpayer could lose £2bn when the assets of failed bank Northern Rock are wound down, the public spending watchdog has warned.

The National Audit Office said the Treasury lost £480m last year from the sale of the bank, although they also pointed out that the recent sale of the bank to Virgin Money did save taxpayers money.

The head of taxpayer-backed RBS says separating the bank's investment and retail branches will mean higher charges for its customers. Chairman Sir Philip Hampton told the Sunday Telegraph: "If it's expensive then either taxpayers will suffer in our case, or customers will suffer, because we'll have to eventually deal with our costs and reclaim some of our costs from customers."

Government banking reforms will remain on track after European Union talks next week despite opposition to its demand for more freedom from Brussels, a source has told Reuters. Chancellor George Osborne said he will see through recommendations from the Independent Commission on Banking for banks to be split into retail and investment arms and to hold more loss-absorbing bonds.

The cost of living has been rising faster for the poorest households because they spend a higher proportion of their incomes on energy and food bills, according to new research. The TUC said consumer price index inflation for the poorest 10% of households in February was 4.1%, compared to 3.3% for the richest 10%. The research comes as the Bank of England brought a halt to quantitative easing asset purchases because of fears of inflation.

Workers in London's financial sector will receive their lowest level of bonuses in a decade this year, according to a new study by the Centre for Economics and Business Research. This year's expected figure of £2.3bn is down from £4.4bn in 2011/12 as banks suffer at the hands of the eurozone debt crisis and recession in the UK.

The Government attempted to maintain its focus on rebuilding the economy in the Queen's Speech, with measures to reduce burdens on business and strengthen regulation of the financial services sector.

Retail and investment arms of banks will be separated under the new Banking Reform Bill, in line with the recommendations from the Vickers’ Report into banking.

Her Majesty stated: “My Ministers’ first priority will be to reduce the deficit and restore economic stability."

Outlining a Banking Reform Bill, she said: "Measures will be brought forward to further strengthen regulation of the financial services sector and implement the recommendations of the Independent Commission on Banking."

The Government will also introduce an Enterprise and Regulatory Reform Bill. "Legislation will be introduced to reduce burdens on business by repealing unnecessary legislation to limit state inspection of businesses," her Majesty said.

She outlined a Groceries Code Adjudicator Bill to curb the power of large supermarkets: "My Government will introduce legislation to establish an independent adjudicator to ensure supermarkets deal fairly and lawfully with suppliers."

There will also be legislation to establish a Green Investment Bank.

Work and Pensions Secretary Iain Duncan Smith has said the Government will break the stranglehold of “predatory lenders”. He called for more credit unions to be opened to offer low-interest loans to the less well-off, and stop people going to payday loan firms where interest rates can be in excess of 6,000%.