The mini-budget Norfolk MP Liz Truss introduced during her brief stint as prime minister was part of the reason for the collapse of Wilko, a parliamentary committee has been told.

Wilko's former chairwoman Lisa Wilkinson told a House of Commons committee that the company had been about to secure lending arrangements when last autumn's mini-budget hiked interest rates.

Ms Wilkinson and auditors at the company, which went bust in August, made her comments as she appeared before MPs on the business and trade committee.

Eastern Daily Press: Former Wilko chairwoman Lisa Wilkinson gave evidence before the committee of MPsFormer Wilko chairwoman Lisa Wilkinson gave evidence before the committee of MPs (Image: Press Association)

More than 12,000 people lost their jobs when the 93-year-old chain went into administration, with stores in Norwich, Thetford, King's Lynn, Dereham, Gorleston, Great Yarmouth and Lowestoft among those which closed.

Eastern Daily Press: Wilko in St Stephens Street in Norwich was among the stores to be closedWilko in St Stephens Street in Norwich was among the stores to be closed (Image: Sonya Duncan)

Ms Wilkinson said there were a number of reasons for Wilko’s failure, one of which was soaring interest rates after the mini-budget in autumn last year.

She said: "We were about to enter into secured lending arrangements with Macquarie when the 2022 mini-budget happened.

"Literally we were in the midst of that, and at that point the interest terms on that loan were hiked massively and that became infeasible. So, that was a contributor."

She also apologised to the thousands of people who lost their jobs and said: "I am devastated that we have let each and every one of those people down with the insolvency of Wilko.

"I don’t know how to put into words how sad I am that we have let down all our team members, all our customers, our suppliers and our advisers."

Pushed by committee chairman Liam Byrne to apologise directly, Ms Wilkinson said: “You can have the word sorry, of course I am sorry… I am sorry that we are not there supporting these people anymore.”

Eastern Daily Press: Liz Truss resigned as prime ministerLiz Truss resigned as prime minister (Image: Press Association)

South West Norfolk MP Ms Truss, who resigned after 44 days in Downing Street, has repeatedly defended her mini-budget.

In September, she used a speech at the Institute for Government think tank to justify decisions during her brief spell in Number 10, calling it unfair to say she had pursued unfunded tax cuts.