David Cameron and Rishi Sunak to be questioned by MPs over Greensill row

The cross-party panel of MPs also want to question Lex Greensill, the boss of the firm which collapsed into administration in March.

The Bank of England, Financial Conduct Authority and UK government Investments will also face questions in the probe into the failure of Greensill and its attempts to lobby the government.

Treasury Committee chairman Mel Stride said: “There are questions to be answered in relation to Greensill Capital regarding the operation of the UK’s financial system and its regulation.

“Also, whether the Treasury responded appropriately to lobbying from Greensill during the pandemic.

“I will be writing shortly to the chancellor, the governor of the Bank of England, chief executive of the FCA, and David Cameron requesting answers to various initial questions.

“The Committee will be holding its first evidence session into Greensill Capital next week.”

A series of investigations have now been launched into the role Cameron played in securing Whitehall access for Greensill, whose firm’s collapse now risks thousands of jobs, particularly in the steel sector.

The Commons Public Administration and Constitutional Affairs Committee gave details of its investigation into the lobbying row, which will look at whether existing rules and penalties are tough enough.

The terms of reference published by the committee note the collapse of Greensill Capital and revelations about its relationship with ministers and Whitehall “have raised significant concerns about the propriety of governance in this country” which “risks undermining public trust”.

Committee chairman William Wragg MP said: “Standards in public life are vitally important, and I think most politicians and civil servants fulfil their roles honourably.

“Maintaining and defending that honourable position matters – that’s precisely why this affair has to be scrutinised.

“We will look into whether the rules need tightening up and clarifying and we will make any necessary recommendations without fear or favour.”

The MPs will examine whether codes of conduct for ministers, special advisers and officials are effective, how conflicts of interest are managed and whether the business appointment rules are broad enough.

The committee will also examine how lobbying should be regulated and consider the issues around the use of consultants and contractors in government.

The prime minister has also asked lawyer Nigel Boardman to investigate after it emerged that former government procurement chief Bill Crothers worked as an adviser for Greensill Capital while in his Whitehall job.

Cabinet secretary Simon Case last week ordered Whitehall department chiefs to declare any instances of senior officials performing dual roles outside the Civil Service.