LOOPHOLES in arms dealing must be closed and the Government should consider monitoring where exported weapons “finally end up”, MPs have said.

The Government says it operates “one of the most robust export control regimes in the world” and “rigorously” examines all applications.

But a report by Westminster’s Committees on Arms Export Controls says no audits are carried out on whether or not UK companies comply with arms laws overseas, and that this must change “as soon as practically possible” to combat corruption and ensure usage does not break British law.

Meanwhile, rules for brokers are said to be “significantly more stringent” in the US and in 23 EU member states, with the Government advised to consider setting up a new “fit and proper person” test to establish whether intermediaries are right for the role.

The paper, released today, also calls on ministers to set out the consequences of Brexit on arms policy and trading.

The body behind the report is a partnership of four separate Commons committees, including those on defence, foreign affairs, international development and international trade. Labour MP Graham Jones, who chairs the committees, said more work is needed to tackle “outstanding questions”.

The committees said they had “heard evidence linking middle-men in the arms industry to alleged corruption and diversion of arms to destinations for which they’ve not been licensed”. In a statement, they said they “couldn’t judge the truth of these allegations, but took them very seriously”.

Jones said: “The committees have together agreed a report that looks in depth at this very sensitive area and makes a series of detailed, constructive suggestions to improve policy and procedures.

“Although the UK has one of the toughest arms-control systems anywhere in the world, this in-depth analysis has highlighted some of the gaps in those controls.

“There are, however, outstanding questions and the committees intend to look into these further.”