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...