THE Serious Fraud Office is still considering whether to take any action over accusations of a "multi-million pound tax scam" at Taunton Deane Borough Council.

The authority was referred to the SFO following allegations in the House of Commons by Bridgwater and West Somerset MP Ian Liddell-Grainger.

An SFO spokesman yesterday told the County Gazette: "I can neither confirm nor deny whether the SFO will take any further action in relation to Taunton Deane Borough Council.

"We are in receipt of material and have not opened an investigation at this stage."

Mr Liddell-Grainger told MPs under Parliamentary protection during a business questions session in February that the SFO was "investigating a multi-million council tax scam by Taunton Deane Borough Council and its officers".

A Deane House spokesman said: "We were confident of our position. The police have now confirmed there is no active investigation and we are grateful to them in making this clear.

“Trust in the integrity of a local authority is all-important and we can assure our residents and our partners that we take that responsibility extremely seriously.

“We are entrusted with public money and our systems and processes are open and transparent - and our finances are independently audited.

“People may not always agree with policy issues but they have redress through the democratic process – a process we uphold with pride.”