The state’s £37bn stake in Britain’s part-nationalised banks will be held at arms-length with no direct boardroom representation, according to the two men charged with managing the investments.

In an article in Friday’s Financial Times, Sir Philip Hampton and John Kingman emphasise giving the banks commercial freedom to “protect and create value for the taxpayer”. They write: “We must operate on a commercial basis at arm’s length ... our job [is] to manage the taxpayer’s investments, not to manage the banks.”