Margaret Hodge, the Labour chair of the Public Accounts Committee, has confirmed she will head the equiry which will also assess how much money has been wasted by cancelling the £55bn BSF programme.

Hodge branded the the BSF programme as in chaos and promised her committee would review Michael Gove’s education cuts.

“The announcement Gove made about the projects that were cancelled was chaotic and shambolic,” she told the Guardian newspaper.

She said that the committee would look into the delays, the bureaucracy and value for money.

“We would also look into value for money in terms of the money that local authorities have already spent before learning that their projects were to be cancelled.

“It appears that Gove is going to come back with a programme which only gives free schools and academies money for their buildings. We have to measure the government against their commitment to be fair,” she told the paper.