Greensill: Labour to press ministers over Cameron lobbying

Ministers will face further questions from MPs later over David Cameron's efforts to lobby government on behalf of a finance firm.

The former prime minister has been criticised for contacting ministers via text on behalf of Greensill Capital, which collapsed in March.

The government has announced a review led by a lawyer, which will report by the end of June.

But Labour has criticised the scope of the investigation as inadequate.

Mr Cameron began working as an adviser to Greensill Capital in August 2018, two years after he stepped down as prime minister in 2016.

The firm was founded by Australian financier Lex Greensill, who had previously worked as an unpaid adviser to Mr Cameron's government.

Mr Cameron has said he has not broken any codes of conduct or lobbying rules. His spokesman has said the former PM welcomes an investigation.

At an emergency Commons debate later, Labour will ask how Greensill came to be accredited to take part in a scheme offering government-backed loans to companies hit by the Covid pandemic.

The firm was approved as a lender under the Coronavirus Large Business Interruption Scheme (CLBILS), which was launched at the start of the crisis.

The party is seeking answers over how it came to be accredited, and whether the former PM played a part.

The British Business Bank, which vetted lenders for the scheme, said on Tuesday it had not been approached by Mr Cameron on behalf of Greensill.

Labour is also pushing ministers to explain Mr Cameron's role in trying to involve Greensill in a separate Covid loan scheme run by the Bank of England.

Mr Cameron texted and phoned Chancellor Rishi Sunak to ask him to broaden the scope of the Covid Corporate Finance Facility (CCFF) so Greensill, a firm which specialised in a financial technique called supply-chain financing, could be allowed to take part.

Mr Sunak has released two text replies to Mr Cameron, in which he told the former Tory leader that Greensill's proposals were not possible but he had "pushed" officials to explore alternatives.

The firm's bid to be included in the CCFF scheme was eventually rejected - but Labour shadow chancellor Anneliese Dodds has said the chancellor's replies suggest "the door seemed to be open for Greensill and David Cameron".

On Monday, the government announced that lawyer Nigel Boardman will lead a review of the government's use of supply-chain finance.

A Cabinet Office spokesperson said the investigation would look "especially" at "the role of Lex Greensill and Greensill Capital".

Mr Boardman will step back from his role as a non-executive board member at the government's business department during the review, they added.

It is understood the review will not have legal powers, and is likely to come up with findings rather than recommendations.

Speaking ahead of Tuesday's debate, Ms Dodds said there was a need for a "completely independent" inquiry with a wider remit to investigate lobbying.

She told BBC Radio 4's Today programme there were "numerous holes" in existing lobbying rules and new legislation was needed.

In a statement on Sunday, Mr Cameron defended his role representing Greensill Capital but said he should have contacted ministers through "formal" channels.

He added that Mr Greensill had been brought in as a government adviser by then-Cabinet Secretary Sir Jeremy Heywood, in 2011.

"As I recall, I met him twice at most in the entirety of my time as prime minister," he added.

"The idea of my working for Greensill was never raised, or considered by me, until well after I left office," he added.