Leading MPs on the Commons Treasury Committee vowed this weekend to turn up the political heat on an embattled private equity industry in the autumn, despite an inconclusive report today from the cross-party group on the controversial sector.

The eagerly awaited report on private equity from the committee emerges this morning as an interim and mainly factual analysis, and will be greeted with relief by the industry.

However, it quickly emerged that the lack of any immediate, firm verdict on the the sector is set to prove only a temporary reprieve for its rich bosses.

John McFall, the committee’s Labour chairman, said: “It is clear that there are areas of concern, which deserve continuing and deeper attention from policymakers . . . A short inquiry cannot do full justice to them.”

Mr McFall made clear that he expects to lead his committee in further, detailed investigation of the disclosures required from private equity players, the size of their rewards, and the financial mechanics behind their huge deals to buy key businesses.

He said: “The scale and significance of the industry is now huge. It is absolutely crucial that we ensure transparency and accountability. There is a great deal still to be looked at in relation to rewards in this industry, and to what extent they are generated by financial engineering, or by value creation.” He added: “There are huge policy issues to be addressed, and the Treasury Committee will be working to ensure that this happens.”

Other Labour and Liberal Democrat committee members also made clear that today’s report will be only the beginning of its scrutiny of private equity. It appears that today’s relatively factual treatment reflects sharp divisions in the committee, with Conservative members more inclined to see private equity as a largely positive force. The split may set the stage for a heated battle in the autumn.

Michael Fallon, the committee’s most senior Tory, who declared as an interest in the report his directorship of a company controlled by Alchemy, the private equity firm, said that the interim conclusions “show a much more sober and balanced approach than the hearings”. “There are complex interlocking issues of tax and the balance between public and private equity which need much further thought.”

However, Labour’s Mark Todd, said that he believed a key issue was whether private equity partners were risking their own money in deals, in return for favourable tax treatment. “The evidence suggested that, more often than not, the partners were contributing relatively little capital and not taking substantial risks,” he said.

Mr Todd said he was keen that the inquiry was now pursued seriously: “It certainly won’t be the end of the argument.” He said that, while all committee members felt more study was needed for final conclusions, “it’s fair to say that there are some members who would like to see the whole issue batted firmly into the long grass”. Labour’s Andrew Love added: “We certainly intend to, and we will be, making recommendations.”

John Thurso, a Liberal Democrat, said it would be “wishful thinking” for private equity to think that the inquiry was all but done. “The fact that this report was unanimous was because it deliberately did not seek to make the kind of contentious recommendations that may come about when the final report is delivered,” he told The Times. “All of the key issues, whether it is taxation, transparency, the various rules . . . we will be addressing all of these.”

Lord Thurso noted that recent upheavals in credit markets would provide real evidence on concerns over the extent of leverage used by private equity. “The landscape has changed hugely in the last three days,” he said.

Damon Buffini, head of Permira, the private equity firm, said: “We agree there are issues that need to be addressed. Permira has long said we need to engage much more with those rightly interested in private equity and we will continue to work to that effect.”

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