Just don’t mention the war… Even as it grapples with the diplomatic minefield of the Iraq situation, the British Government is also asking financial services companies to provide information on their preparations for a terrorist attack. But the request from the Treasury says specifically that it has nothing to do with Iraq.

The Government wants to compile a “consultation paper” discussing companies’ views on how to best keep the financial industry running after an attack. And it has good cause: the September 11 attack/s brought the US financial services industry to a standstill.

Financial Secretary Ruth Kelly says the financial services sector’s vital role in the British economy “makes it particularly important to be sure we have good arrangements in place to maintain the financial system’s resilience during major operational disruption”.

Of particular interest is the views of industry leaders on the advisability of suspending particular parts of the financial system. Insurance leaders are understood to be involved in giving advice.