MPs have criticised Gordon Brown and the Treasury for overseeing a "catalogue of failure" at the Inland Revenue.

The criticism follows the botched introduction of family tax credits. The Commons Treasury select committee put the problems down to poor leadership and severe IT failures.

"This inquiry has raised serious questions about how the department has been led," the Labour dominated committee concluded.

David Willetts said that responsibility lay with the chancellor.

"This shocking report shows the extent of the chronic mismanagement at the Treasury. The architect of this new empire is Gordon Brown. It is he who must take ultimate responsibility and is now on borrowed time," the shadow work and pensions secretary said.

"It is clear the Inland Revenue is in a complete shambles. Relations between the responsible minister and senior revenue officials appear to have completely broken down."