New laws will be introduced to prevent travellers being left in a "ridiculous situation" following the collapse of firms such as Thomas Cook, the transport secretary says.

Grant Shapps was speaking after the travel giant went into liquidation earlier this week, leaving 150,000 passengers having to be repatriated to the UK.

Shapps told parliament that he hoped new laws would enable stricken travel firms to be wound down in a "more orderly" way.

He said the government would examine the "reforms necessary to ensure passengers do not find themselves in this ridiculous situation ever again".

He added: "(Travel companies) need to be able to look after their customers and we need to be able to ensure their planes can keep flying in order that we don't have to set up a shadow airline.

"This is where we will focus our efforts in the next couple of weeks.

"We will require primary legislation and, dare I say it, a new session of parliament."