The task force, called the Public Sector Fraud Authority, is to receive initial funding of £25m to tackle fraud revolving around taxpayer money and will be operational by July.

The task force will also be responsible for recovering money stolen from Covid-19 support schemes and spotting suspicious companies and people seeking government contracts. It will also mount mandatory inspections on Whitehall programmes to uncover vulnerabilities.

The task force, which will be based in the cabinet office, and will be chaired by Rishi Sunak and deputy chaired by chief secretary to the Treasury Simon Clarke, and minister for Brexit opportunities and government efficiency Jacob Rees-Mogg.