Tax Credit Blunder Accident Waiting To Happen

5.09.47pm BST (GMT +0100) Wed 23rd Jul 2003

Montague and Primarolo Must Share Blame.

Commenting on the Treasury Select Committee Report on the Inland Revenue's management of tax credits, Norman Lamb MP, Liberal Democrat Treasury Select Committee Member, said:

"The Government must take some of the blame for the Inland Revenue's tax credit cock-up."

"It was the Government that imposed the new tax credit process on the Revenue and did so without adequate preparation. Millions of applications being processed in a few months with a new computer system was an accident waiting to happen."

"The Inland Revenue has now built up a huge catalogue of blunders over the last few years. The review called by the Government must be root and branch if it is to restore the Revenue's credibility."

"The latest tax credit blunder leaves serious question marks over Sir Nicholas Montague's leadership, but Dawn Primarolo must also take responsibility for falling asleep on her watch."