The UK government has appointed inspectors to investigate the affairs of collapsed car maker MG Rover and its owners Phoenix Venture Holdings.

According to the Press Association (PA), trade and industry secretary Alan Johnson said the demise of the Birmingham-based company had been a "huge blow" to the workers and their families as well as firms which used to supply the huge Longbridge factory.

"People want to know what happened," the minister reportedly said.

PA said he had appointed a barrister and a senior accountant to examine issues raised by the Financial Reporting Council, which last week said that an inquiry it held into the accounts of the Rover Group had raised a "number of questions".