Council 'exposed' without counter-fraud team

Shropshire Council is "leaving the door wide open" to fraudsters by not having a dedicated counter-fraud team, a councillor has claimed.

Harry Hancock-Davies said the authority would continue to lose out on "an unquantifiable" amount of money until investigating officers were operational.

The ruling Liberal Democrat administration agreed on Wednesday to explore options to create a corporate fraud team in the 2027-28 budget, dependent on the cost.

A survey by the National Anti-Fraud Network (NAFN) found the number of fraud cases reported by local authorities had almost doubled in the last five years.

The type of fraud investigated by officers at other councils include blue badges, business rates, single-occupancy council tax, housing and procurement.

"You have to look for fraud, and if you don't have the capability, then unfortunately you won't uncover it," said Hancock-Davies, a Reform UK councillor for Battlefield in Shrewsbury.

"For example, if a single mother has applied for social housing but somebody has already been given a house which they're not entitled to, then that person is being disadvantaged.

"We can't put a figure on it, but it's about protecting public funds and protecting those who do the right thing," he added.

A 2025 NAFN report found that most councils had on average between two and three investigators per counter-fraud team.

It also found that for every £1 spent on counter-fraud activity, there was a £3.65 return on investment.

Shropshire Council expects three full-time investigators to cost about £150,000 a year.

The leadership team at the cash-strapped authority were split on the need for such a team during a meeting on Wednesday.

The Liberal Democrat portfolio holder for finance, Roger Evans, said he did not think fraud was prevalent within the council and warned that the cost of operating a team could worsen its financial situation. He did, however, back the proposal.

While the authority's interim finance officer, Duncan Whitfield, said the council needed a fraud team as soon as it possible and that its current provision was not enough.

"I need people who can train the organisation to detect and prevent fraud. I also need that fraud team as a deterrent," he said.

Neighbouring Telford and Wrekin Council has a fraud investigation team of two full-time employees.

The organisation conducted 113 investigations in 2024-25, of which 67 had a positive outcome worth £305,858.

A further 46 open investigations were carried over into the next financial year.

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