David Cameron faces fresh calls for an urgent probe into his links with a scandal-hit banker amid claims he granted him privileged access to Government departments.
The Tory former prime minister was said to have provided Lex Greensill with a security pass for 11 departments to help develop a financial product across Whitehall.
But the Sunday Times reported that Mr Greensill’s firm then benefited financially from the Government-backed loan scheme he designed.
The Pharmacy Early Payment Scheme saw banks swiftly reimburse pharmacists for providing NHS prescriptions, for a fee, before recovering the money from the Government
The banker founded Greensill Capital, which went on to employ Mr Cameron but later collapsed, causing uncertainty for thousands of jobs at Liberty Steel as it was the main financial backer.
Sir Alistair Graham, former chairman of the Committee on Standards in Public Life, called for a full inquiry into the affair.
“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,” he said.
Labour’s Rachel Reeves added: “Barely a week goes by without a story about Conservative cronyism and allegations of the misuse of taxpayers’ money.
“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.”
Before the latest revelations, Mr Cameron was cleared by a watchdog looking at whether he engaged in lobbying for which he should have been registered.
Mr Cameron became an employee of Greensill after he left No10 in 2016.
But the firm, once valued at £5billion, went into liquidation this month.
Mr Geensill could not be reached for comment, but the newspaper said he was understood to deny making large returns from a pharmacy deal. A representative of Mr Cameron has been contacted for comment.