Osborne failed to declare free family holiday

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The shadow chancellor, his wife Frances and their children were staying at the Corfu home of financier Nathaniel Rothschild, the Standard has learned.

The Osbornes paid their own flights for the august holiday but Mr Osborne neglected to mention in the register of Member's Interests that they also had the run of the Rothschilds' clifftop estate for a week. During the stay Mr Osborne was invited to meet Mr Deripaska on his £80 million yacht moored nearby.

Lewes MP Norman Baker said: "The golden rule is that you don't take hospitality from somebody who has a clear financial interest in the policy you are creating."

A spokesman for the shadow chancellor denied he had broken the rule and added: "This was a stay with an old friend."

However, MPs said the fact that Mr Rothschild was entertaining so many influential figures would suggest business was discussed by guests.