City of York Council is set to adopt a new, tougher set of procedures to boost the battle against fraud and corruption - both inside and outside the council.

The new plan codifies much of the authority's existing practice and builds upon recent successful initiatives such as the council bringing its own prosecutions against benefit fraudsters.

But the new Fraud Response Plan also includes for the first time a presumption that the council will consider prosecution in every case of fraud it uncovers.

The new policy - which is being discussed at today's meeting of the council's Executive - is backed by the public with council consultation and research showing that residents want the council to be tougher with fraudsters.

The new policy has been developed after two Best Value reviews - of the council's revenues and benefits and risk management services - which recommended a counter-fraud strategy that would take account of new government guidance and the benefits subsidy regime.

The council's audit fraud and compliance service, which now combines internal audit with the former Housing Benefits fraud team, is looking to use the new policy to guide its counter-fraud activities.

Robert Beane, the council's internal audit manager, said, "The Fraud Response Plan and Prosecution Policy are necessary components of any system of sound financial management and as well as guiding the audit fraud and compliance service, the plan guides other officers in responding to fraud and corruption."

Councillor Viv Kind, deputy leader of the council, said, "People must take responsibility for their actions. Our Best Value reviews have included extensive consultation which showed that there is public support for the prosecution of fraudsters. The council will not tolerate fraud and corruption and while our officers will investigate all the circumstances of a crime they will seek prosecution in most cases."

As well as prosecuting offenders the council has routinely sought to recover its loss from the offender - often by issuing an invoice or, in the case of benefits fraud, by claw-back from a later claim. However, if they back the new policy, councillors will also agree to take on the risk of losing legal costs which are not always recoverable following a successful prosecution.

Councillor Kind said, "This new policy signals our determination to deter and thus minimise fraud by publicising convictions as much as possible and ensuring proper punishment is applied to those who are guilty as well as our intention to recover overpayments and costs."

Housing benefit fraud alone is thought to cost local taxpayers some £250,000 a year in overpayments and last year the council conducted more than 600 investigations. The council runs a confidential fraud hotline on 01904 553453.

Maggie Fitzgerald, the councils fraud team leader, welcomed the new policy. She said, "The council works hard to try to help people claim the benefits they are entitled to but is equally determined to tackle fraud and prosecute those claim benefits they are not entitled to and who are stealing taxpayers' money."

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