Public sector loses £38bn to fraud

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Fraud losses in the public sector are twice as high as previously thought, according to a new report.

The total public sector fraud losses stand at £38bn, with £22bn of this involving public expenditure and a further £16bn lost through uncollected taxes at both local and national level, according to the Financial Cost of UK Public Sector Fraud Report.

These losses could be reduced by up to 30% by 2013-14 if measures are taken to change the way fraud is managed in the public sector, argue the report’s authors MacIntyre Hudson and the Centre for Counter Fraud Studies at University of Portsmouth. This would represent a cumulative saving of £22bn over the next three years and an annual saving of £11bn by 2013-14.

The report also highlights a significan...

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I wonder how much of this is fraud by MP's & councillors fiddlin


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So this report is saying ........

that because, on the face of it, we lose less than the international average, our losses must be underestimated.

Sounds a bit like scaremongering to me.   And just a few days before an election.   Cynic?  Moi?


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It's outrageous!

I work in the public sector and I haven't seen a penny of this.

More seriously, I agree that each and every person responsible for public money needs to put fraud high on his or her agenda. Your article does n't really go into any depth - nor could it be expected to. It's effectively an expanded headline bolstered by a couple of rentaquotes. I need really to see the report in its entirety in order to understand what is being said, to comment effectively and to decide whether I should do anything that I don't already.Your article doesn't tell me where to find it, though I daresay Google could pick it up.


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Public Sector losses

It's just as well that HMRC managed to raise £39bn since 2005 to balance the public sector fraud losses and so UK plc is just in profit!

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Full report available

To the third poster: I agree with you that it's really hard to get sufficient depth going in an article of this length and you may need to read the full report to get a better grip on the details. I've made the PDF available for download on this page (you should see it just below the article text above). If, for any reason, you can't download it from here, you'll find it on MacIntyre Hudson's website (try this link).

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