Shropshire losing £21 million to fraud, says report

The figures, released by the Blur Group as part of a study into procurement fraud, also found fraudsters had stolen nearly £3 million from local government in the county.

The figure was highest in the area covered by Shropshire Council, where a total of £13.4 million was stolen from employers, £1.9 million coming from local government and £11.5 million from private businesses. In Telford & Wrekin fraud accounted for £8 million – £1 million from local councils and £7 million from business.

Blur Group chief executive Philip Letts said that while organisations have got to grips with direct spending in recent years, there was still a huge problem with controlling non-direct spending, including areas such as hiring professional services and consultants. "It means businesses are at risk of losing out to competitors already tackling the problem and councils face added cost pressures and accusations of inefficiency at a time of tough financial settlements from central government," he added.

Mr Letts said: "The figures are shocking but Shropshire is not alone on this issue.

"As well as private sector companies wasting millions of pounds of their own potential profit and operating under a tighter financial burden, a major aspect of procurement fraud falls within the public sector which means taxpayers' money is being wasted too."

Emily Taylor, of Telford & Wrekin Council, said the authority did not recognise the data supplied by the Blur Group.

"In annual nationally-run surveys, the council has reported zero levels of procurement fraud," she said.

"The council has an anti-fraud and corruption policy that clearly outlines our stance of zero tolerance in respect to all fraud."

Shropshire Council said it also did not recognise the figures.