THE Government must remove the confusion that marred the response to the horsemeat contamination crisis and improve its understanding of potential food fraud, according to a report.

The National Audit Office (NAO) said the Government failed to identify the possibility of adulteration of beef products with horsemeat, despite indications of heightened risk.

It found that arrangements for identifying and testing for risks to food safety were "relatively mature and effective", but arrangements for food authenticity were not.

According to the report, a split in responsibilities between the Food Standards Agency (FSA) and Whitehall in 2010 has led to confusion about the role of the FSA and Defra in responding to food authenticity incidents.

The NAO report said local authorities reported 1380 cases of food fraud in 2012 - up by two-thirds since 2010.

And it said the Government recognised that it needs to address weaknesses in its intelligence gathering and sharing and its understanding of opportunities for fraud throughout the modern food chain.

Among the NAO's recommendations is that some resources should be shifted from such activities as the inspection of slaughter houses to the checking of the manufacture of processed meat products and the long supply chains involved, but this will require European agreement.