A COUNCIL has received a personal apology from Government fraud inspectors in the wake of a Press release announcing it was to be investigated.

Now the planned 17-week inspection at Redcar and Cleveland Borough Council's housing benefit section has been revised to only two days in June.

Benefit Fraud Inspectorate (BFI) director Chris Bull described the situation as a rather unfortunate episode.

Council chief executive Colin Moore said: "In a classic episode of Yes, Minister 20 years ago, Sir Humphrey Appleby wanted to condemn a council as the worst in Britain because they had not returned their blue forms. I am now reliving that comedy."

The council had expressed anger over the media release from the Department for Work and Pensions, warning of an inspection because it was accused of "consistently failing to provide quarterly management information to the department".

The council denied the allegation.

Mr Moore said: "The supply of that particular statistic was voluntary, not mandatory and was also concerned that the first information it received of a planned inspection was supplied by a local journalist."

He said he was surprised at the criticism after the housing benefits section had received a four-star rating in a recent comprehensive performance assessment, which was backed up by a very positive district audit report.

The council maintains it had kept in regular e-mail contact with the Department for Work and Pensions over the provision of information.

But last week, a Government spokeswoman said the council would still be subject to a 17-week inspection, including four weeks on the site.

Civil servants at the department had instructed Mr Bull to launch an in-depth investigation, but he has written to Mr Moore to say this will not happen.

Mr Bull says in his letter: "You were absolutely right to be critical of first hearing about BFI activity through a Press notice, rather than an individual letter.

"I have now ensured that such a mistake will not recur and I apologise for the difficulties caused."

A spokeswoman for the Department for Works and Pensions said the matter was now closed.