Renewed calls for inquiry into David Cameron’s ties with banker

David Cameron Credit: PA

There are renewed calls for an inquiry into David Cameron's ties with a banker after allegations surfaced that Lex Greensill was given privileged access to government departments.

An investigation by the Sunday Times alleged that Mr Greensill benefitted from a government-backed loan scheme he designed after the Mr Cameron, who was then prime minister, gave him access to 11 departments and agencies.

Labour and Sir Alistair Graham, former chairman of the Committee on Standards in Public Life, called for a full inquiry into the “scandal”.

The allegations surfaced after the former prime minister faced scrutiny for reportedly trying to persuade government figures to grant emergency loans to Mr Greensill's business, Greensill Capital.

The Sunday Times report alleged the Australian businessman was given access to government departments so he could promote a financial product he specialised in.

The Pharmacy Early Payment Scheme, announced in 2012, meant banks could swiftly reimburse pharmacists for providing NHS prescriptions, for a fee. The banks would then recover the money from the government.

Greensill Capital provided funds for the scheme.

Mr Geensill could not be reached for comment, but the newspaper said he was understood to deny making large returns from the pharmacy deal.

Sir Alistair said: “There clearly should be a full inquiry because it sounds like a genuine scandal in which the public purse was put at risk without proper political authority.”

Sir Alistair Graham Credit: Johnny Green/PA

Labour’s shadow chancellor of the Duchy of Lancaster, Rachel Reeves, said: “These reports raise very serious questions about the conduct of former Conservative prime minister David Cameron and the access he gave Lex Greensill to ministers and Whitehall departments.

“The British people deserve answers to those questions. That’s why the Conservatives should agree to an urgent inquiry so we can get to the bottom of this latest scandal.”

Culture Secretary Oliver Dowden Mr Cameron saying he is a “man of utmost integrity and I’ve no doubt at all he would have behaved properly”.

Asked on The Andrew Marr Show if there would be an inquiry, he said: “As far as I can tell, no decision in government policy was changed as a result of any meetings that took place. They’d be properly declared.”

Labour’s Rachel Reeves claimed /cronyism’ is ‘rampant’ within the Tory party Credit: Jonathan Brady/PA

A government spokesman said: “Lex Greensill acted as a supply chain finance adviser from 2012 to 2015 and as a crown representative for three years from 2013.

“His appointment was approved in the normal manner and he was not paid for either role.”

The office of Mr Cameron, who was prime minister from 2010 to 2016, has not responded to a request for comment.

Mr Cameron went on to work for Greensill Capital. The firm was the main financial backer for Liberty Steel, and when it collapsed, it caused uncertainty for thousands of jobs at Liberty Steel.

Mr Cameron was cleared of breaking lobbying rules by a watchdog after reportedly asking Chancellor Rishi Sunak to support Greensill Capital through the Government’s Covid Corporate Financing Facility.

The Registrar of Consultant Lobbyists said that since Mr Cameron was an employee of Greensill Capital, he was not required to declare himself on the register of consultant lobbyists.