George Osborne in Barclays talks

George Osborne today met Barclays chief executive Bob Diamond for talks amid speculation the banking sector has succeeded in putting pressure on the Chancellor to water down the forthcoming Vickers banking reforms.

The Treasury insisted Osborne's meeting was not out of the ordinary as he met banking leaders on an "ongoing basis".

But insiders acknowledged the Vickers report, which is published on September 12, was on the agenda. "These are complex and difficult questions and it's important we get things right," said one Whitehall source. Barclays declined to comment.

Osborne is also due to meet Santander UK boss Ana Botin within days. Many in the City have spoken out against the likely plans by Sir John Vickers' Independent Banking Commission, which is expected to recommend splitting banks' retail arms from riskier investment banking operations.

Banks, particularly Barclays and Royal Bank of Scotland, fear such a split will hit profits. The CBI also worries the reforms will see lending to businesses fall at a time when the economy remains highly fragile.

The lobbying appears to have paid off as the Government has indicated the reforms could be delayed until 2015.

Prime minister David Cameron has reportedly said nothing must be done that "puts jobs at risk".
The Treasury has indicated it will not provide a formal response to Vickers until the end of this year at the earliest.