The British parliament's Public Accounts Committee has published a scathing report into the Emerging Business Trust set up to promote new firms in the North.

The British government faced demands today to call in the police to probe a financial scandal in the North involving public funds and claims of insider trading.

A damning report on the operation of a fund set up to help emerging businesses in the North will be probed by a powerful House of Commons committee of MPs next week, it was revealed today.