Furious Branson attacks Lib Dem deputy leader Vince Cable

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The exchange came after Mr Cable questioned in the Commons whether Sir Richard was a "fit and proper person" to run the bank and described his Government-backed bid as a "con".

Now Sir Richard has written a furious letter to Mr Cable repudiating his criticisms – including the claim that he became the favoured bidder as the result of a "sweetheart deal" with the Prime Minister during their trip to China last month.

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Richard Branson has launched an astonishing attack on Lib Dem deputy leader Vince Cable

In the letter, sent on Thursday, Sir Richard wrote: "It is said that ignorance is bliss but this does seem to be taking matters to an extreme.

"Perhaps you could explain in what way this is a 'sweetheart deal'?"

However, Mr Cable steps up his attack with an article in today's Mail on Sunday.

He writes: "There are serious public-interest grounds for worrying about the Branson bid.' And he questions Sir Richard's tax status.

A Virgin spokesman said: "Sir Richard wrote to Vince Cable before Christmas asking to meet. We didn't get a response. Then a week ago he made more comments, so we wrote again trying for a meeting.

"We did not say he was ignorant but that he was ignorant of the details of the matter."