Around one million former Bradford & Bingley shareholders are hoping a move by Shipley MP Philip Davies will enable them find out why the bank was broken up in 2008, which resulted in their holdings being wiped out.

Mr Davies has secured a pledge from a Cabinet minister that the decisions taken by the previous Labour government in the run up to the nationalisation of Bradford & Bingley will be examined.

Mr Davies said five years after the bank was taken into public ownership shareholders and bondholders were no clearer to understanding what happened.

Speaking in Business Questions in the Commons, Mr Davies said Bradford & Bingley was treated “so unfairly” in comparison to other banks in a similar situation and called for Chancellor George Osborne to make a statement about what decisions were taken prior to September, 2008.

Mr Davies said: “Bradford & Bingley was expropriated by the Labour government in a horrid and flawed decision taken by the then Prime Minister and Chancellor. Since that time nearly 1 million shareholders and bondholders do not know how and why their company was confiscated.” Commons Leader Andrew Lansley agreed the decisions should be looked into and he will speak to Mr Osborne.

He said: “The Chancellor of the Exchequer will not himself directly have access to the papers of the previous administration but I will ask him what steps, not least in the context of the continuing enquiry into banking standards, would be appropriate to undertake in order to find out more about the circumstances.”

The Government took control of the bank’s mortgages and loans, while B&B’s £20 billion savings unit and branches were bought by Santander.

Mr Davies said he was pleased the matter would be looked at.

He said: “Five years on employees and shareholders deserve a proper explanation.”