By Jonathan Davies

The Treasury has not learned the lessons of the 2007-08 financial crisis and would not be ready for another crash, according to a Parliamentary report.

The report by the Public Administration Select Committee found that the UK could face huge economic shocks in the event of another financial crisis.

The Committee said that the Treasury gives greater importance to non-financial risks like pandemic flu, than to financial ones.

Economic risks are not included in the government's National Risk Register and regulatory processes are split between the Bank of England, the Financial Conduct Authority and the Treasury. The report finds that, as a result, assessing "systemic financial collapse" is not "comprehensive".

The Treasury said the report "entirely missed the point" and "takes no account of the relevant facts".

A Treasury spokesperson said: "By focusing on Whitehall procedures they have entirely missed the point: the lessons of the financial crisis have been learned and acted upon‎ by putting in place a reformed regulatory system, ring-fencing the banks, ending the 'too big to fail' problem, and dealing with the risks posed to the economy by an unsustainable deficit.

"Taking the action needed to protect hardworking people from the effects of future financial shocks is at the heart of our long-term economic plan."

Chaired of the Committee, Conservative MP Bernard Jenkin, said the Treasury "does not yet seem to appreciate the role of government in promoting new technology and innovation across the public sector and in the private sector".

The Public Administration Select Committee recommended that the Treasury play "war games" with other regulators to plan and test for a number of different crises, some of which may not be triggered by a financial event.