MPs are to hold an inquiry into the takeover of Cadbury by US food giant Kraft and the controversial move to close a factory with the loss of 400 jobs.

The business select committee will question senior officials from Kraft at a special Commons session early next month.

The committee’s Conservative chairman Peter Luff said he felt he had no choice but to make the move amid criticism of the US firm and of the Government.

Mr Luff said MPs wanted to know why Kraft went back on its pledge to keep open the Somerdale factory near Bristol.

The plant was earmarked for closure by Cadbury after the chocolate-maker said it would transfer work to Poland.

But while Kraft was bidding to buy the British company it said it would keep the factory open, only to announce its closure after the buyout was completed.

“The Government said it opposed the takeover, then welcomed the deal, but then criticised Kraft for closing Somerdale.

“Fresh hope was given by the Government and Kraft about this factory and it is time someone took them to task. We also want to know what Kraft’s plans are for Cadbury and whether we can trust them,” said Mr Luff.

Hundreds of Cadbury workers staged a protest in Westminster on the day the deal was sealed earlier this month, raising fears for their jobs and criticising the Government for not doing enough to safeguard employment.

Just days later Kraft said it had changed its mind about the Somerdale plant and will close it after all by next year.

Union officials are also set to give evidence to the select committee during the inquiry.