A clause inserted during the Abu Dhabi Royal Family's investment in Barclays last October has made it practically impossible for the Government to take a meaningful stake in the bank, The Times has learnt.

News of the clause is likely to reignite controversy over the way that Barclays raised the money -- dubbed at the time by Vince Cable, Liberal Democrat Treasury spokesman, as "a scandal of mammoth proportions". Barclays shares fell another 9 per cent yesterday, having collapsed by 35 per cent at one point, amid speculation that it is poised to raise more capital -- either in the market or from the Government.

But the small print in the deal, in which Barclays raised £7.3 billion from Abu Dhabi and Qatar, means that if the bank raises fresh capital before the end of June, the Middle Eastern investors would receive a greater number of shares for their original investment without paying more. If Barclays were to raise fresh capital at last night's closing price, for example, it would automatically hand almost 50 per cent of the bank to the Middle Eastern investors. The only way to get around the anti-dilution clause, should Barclays need more money before the end of June, would be if new capital was raised at more than the 153p-a-share at which paper issued to Abu Dhabi and Qatar is due to convert into Barclays stock.

This would mean that if the Government wanted to take a meaningful stake in the bank, it would have to do so by paying more than 153p for Barclays shares -- which were trading at just 66.1p yesterday. The Treasury would face accusations of wasting taxpayers' money were it to do this.