The failed digital venture, vVoosh, once championed by Sarah Ferguson , the former Duchess of York, received more than £1m of taxpayers' money but collapsed without ever launching a product, it has been claimed. Sarah served as an ambassador, lending her public profile to the project, which aimed to carve a niche in a crowded social media landscape.

Lifestyle app, vVoosh, was founded by Manuel Fernandez, a close friend of Ms Ferguson. It was put into administration last month and its failure will raise further questions about Sarah and the business relationships she pursued.

vVoosh raised around £9m, including more than £1m from the UK government through research and development tax credits, according to documents filed by the administrator.

The administrator's report describes a "br

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