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Dundee LibDems slam tax credits "shambles"

June 22, 2006 7:40 AM
Michael Charlton, Dundee Liberal Democrats' local party secretary

Micahel Charlton slams tax credits "shambles"

Dundee Liberal Democrats have today (Thursday 22nd June) expressed deep concern at the "shambles" of the tax credit system.

This follows news that earlier this week David Laws MP, Liberal Democrat Shadow Work and Pensions Secretary, has accused Treasury Ministers of a cover-up over the scale and causes of fraud in the system which is aimed at helping low income workers.

The Liberal Democrats are pressing Treasury Ministers to publish a new report on tax credit fraud and error, which is believed to be complete, and which was due out this Spring. The report is expected to significantly increase the estimate of the annual cost of tax credit fraud from the initial figure of £460m.

Commenting, Mr Laws said "The Treasury has failed to get a grip on tax credit fraud, and now they seem to be hiding a new report revealing the cost of such fraud, which was ready months ago. We understand that the Treasury has completed its estimates of fraud, but seems to be delaying this latest embarrassment for the Chancellor."

Locally, Dundee LibDem party secretary Michael Charlton said, "Its really concerning that in trying to encourage take-up of the tax credits scheme, the government has failed to put in place the proper checks against fraud. Labour is responsible for a tax credits shambles."

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