Tony Blair spent much of his last months in power worrying about his legacy, I think we can already report on Gordon Brown's. Yesterday the BBC reported that the the National Audit Office (NAO)has reported that "Losses from the government's tax credit system are 'unacceptably high' and that "the system was losing up to £1bn a year through fraud and errors."
The BBC report continues, and I comment:
"It also found that almost half of the £2.3bn that was overpaid to claimants
in 2003/04 had yet to be recovered by HM Revenue and Customs by April 2007."
Overpay and don't bother recovering the money, is this incompetence or a deliberate bit of wealth redistribution?
"But the government said fraud and error rates were falling after moves were
taken to tackle the problem last year."
YOU MEAN IT WAS EVEN WORSE BEFORE! IT HAS FALLEN TO £!bn A YEAR!
"Financial Secretary Jane Kennedy explained that fraud and error rates had
fallen by a sixth since HMRC took over the running of the tax credit system
from the Inland Revenue."
The HMRC is only a new body in that it is the result of mergeing the Inland Revenue with HM Customs & Excise, I would imagine the people in charge of the relevant departments are the same.
"Since its launch in 2003, the system has been plagued by complexity,
overpayments and fraud.
In May, the Treasury admitted a total of £1.8bn was overpaid in 1.96 million
claims during 2004/05.
However, it also added that the figure was substantially lower than the
£2.2bn paid out in 1.88 million claims in 2003/04."
These figures are staggering and possibly the result of the most incompetent design of a system yet by this Labour government and there is a lot of competition there.
"According to the report, HMRC now has more than 10,000 tax credit staff,
costs have risen 45% over the past four years, and legal action has been
launched against tens of thousands of families as the service attempts to
claw back overpayments."
Yet another government job creation scheme, buracratic unproductive jobs obviously, that soaks up money, has ever increasing costs and DOESN'T WORK PROPERLY.
Do you think the BBC will cover this story of massive government incompetence on a main news page rather than on the "business" pages? Why is this business related anyway, the people benefiting are private individuals and the organisation responsible is certainly not run as a business? What are the chances of the BBC holding a Have Your Say on this matter?
Don't forget that Gordon Brown steadfastly avoided answering questions on the Tax Credits system when he was Chancellor of the Exchequer, he left answering questions to a minion.
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