Britain falls in 'corruption' table

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An annual analysis of perceived corruption showed the UK had dropped from a score of 8.4 out of 10 to 7.7 out of 10 in the last 12 months - the first time it has ever fallen below 8.

Transparency International, which carried out the analysis of 180 countries worldwide, said cash-for-honours, the reluctance to expose MPs' expenses and the decision to drop the investigation into the BAE Systems' Al Yamamah arms contract with Saudi Arabia were all to blame for the decline.

The score put the UK joint 16th on the Corruption Perceptions Index (CPI), alongside Ireland but one place above the USA. Denmark, Sweden and New Zealand were judged to have the lowest levels of corruption on a score of 9.3, followed by Singapore on 9.2 and Finland and Switzerland on 9.0. Somalia was bottom of the list with a score of 1.0, with Burma and Iraq on 1.3, Haiti on 1.4 and Afghanistan on 1.5.

Chandrashekhar Krishnan, executive director of Transparency International UK, criticised the Government for having failed to take action against corruption.

He said: "Public confidence in political office has been eroded by the 'cash-for-honours' affair and the grudging exposures of MPs' expenses. The new CPI rating suggests that business itself is sharing this loss of trust.

"If the UK, which provides the most comprehensive access to world markets, does nothing to check foreign bribery and fails to help others who are trying to tackle it, well-governed companies will ask whether they incur unacceptable risks by organising their commerce in the UK."

And the organisation's chairman Laurence Cockcroft said the UK's international standing could continue to fall.

He said: "In some respects, this year's CPI still flatters the UK. Is it really so difficult to pass a proper anti-corruption law in 11 years since one was required and recommended? "

A Department for Business, Enterprise and Regulatory Reform spokesman defended the Government's record and said ministers would seek to legislate against bribery as part of a wider commitment to tackling corruption.