A Customs operation which aimed to stop incidents of tax evasion on whisky, gin and vodka, has left dozens of people wrongfully convicted and cost up to £1 billion in lost revenue.

The Court of Appeal reversed eight convictions yesterday because Customs had failed to fully inform the courts about its covert operations. Dozens more people who were sentenced to prison or fined are expected to begin proceedings to clear their names and may seek compension from the government.