Fraud inquiry delays fund payout

Former MG Rover staff cannot be given money from a hardship fund until a Serious Fraud Office inquiry has been carried out, the government has heard.

Birmingham Northfield MP Richard Burden told Commons Leader Harriet Harman there is a fund of £16m for former Longbridge workers.

It cannot be distributed until inquiries into MG Rover's collapse have been completed.

The Birmingham-based firm collapsed in 2005 leading to a loss of 6,000 jobs.

Mr Burden asked Ms Harman to confirm it was the government's intention to publish the report into MG Rover's demise as quickly as possible and to ensure the former workers receive the money that is their due.

Ms Harman said she agreed the Rover workers should be paid as quickly as possible.

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