David Cameron has backed George Osborne's controversial claim ministers should be allowed to interfere in Royal Bank of Scotland (RBS).

The Chancellor's comments raised eyebrows with his defence of such action earlier this week.

Although the taxpayer owns more than 80% of the bank, experts have warned against politicians meddling in its affairs. But that view was rejected by the Prime Minister yesterday.

He said: "It is important the Government stands up for the taxpayer and ensures RBS has the right strategy and the right leadership so we get back the money that was put into the banks by the last Government."

Labour bailed RBS out to the tune of more than £46 billion at the height of the financial crisis.

Mr Cameron was facing pressure on the issue from Labour's former Treasury minister Geoffrey Robinson, who said Mr Osborne's interventions were costing the UK "billions".

The Prime Minister hit back citing the uproar over the revelation that Mr Robinson had lent money to former Labour business secretary Lord Mandelson to buy a house, and saying "I know has great experience of lending money."