The Treasury is under so much pressure it should consider getting funding directly from the financial services industry, former cabinet secretary Gus O'Donnell has said.
Lord O'Donnell used his first speech to the House of Lords to say the Treasury is "in danger of being swamped by the pressures placed on it", the Daily Telegraph reported.
The report said Lord O'Donnell, former permeant secretary to the Treasury, believed that too many officials were leaving the department and that staff are underpaid.
He warned the Treasury may be struggled to cope with problems caused by the global financial crisis, adding the rate of staff turnover was "far too high and their pay levels too low".
He suggested that part of the department dealing with financial services and stability could be funded by the industry itself, to save taxpayers money, the report said.
The Financial Services Authority (FSA) is already funded by an industry levy.
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