Councils have been issued with new guidance that is designed to combat the estimated £2bn lost through fraud every year.

It covers everything from business rates to housing tenancies and offers solutions including anti-fraud maps and smart phone apps.

The guidance also outlines ‘six steps needed to take the fight to the fraudsters’. They include creating a culture where beating fraud is part of the daily business, deploying the right level of resources, and collaborating with other local authorities and agencies.

Local government minister Marcus Jones said: ‘We are determined to find, catch and prosecute the fraudsters who rip-off councils denying taxpayers billions of pounds.

‘Across government we are clamping down on corruption and I’d urge councils to make full use of these suggestions to get tough on fraud.’