Gordon Brown has announced a major review of the roles of the Inland Revenue and Customs and Excise.

The surprise move was revealed in a statement to the Commons Treasury select committee.

It follows a series of critical newspaper and audit reports that have prompted concern about the effectiveness of the tax collection agency.

Most recently, the Inland Revenue has been criticised by MPs for agreeing a property deal with a company based in a tax haven.

Meanwhile, Customs and Excise has also come under fire following a series of high profile court case collapses involving the loss of over £100 million in revenue from scams involving excise duty fraud.

Glossing over the failures, the Treasury said the two organisations had played a key role in supporting the government's reforming agenda.

"The primary focus of the review will be making public service delivery more effective and efficient. It will be conducted in discussion with unions and other stakeholders," the chancellor said.

But shadow chancellor Michael Howard said the review was "an admission that the Inland Revenue and Customs and Excise are in chaos".

"The architect of this failing tax system is Gordon Brown, and it is he who must take ultimate responsibility," he said.

And he called for paymaster general Dawn Primarolo, who has responsibility for the agencies, to take responsibility for recent failures and resign.

"It is vital that the British people have faith in the Inland Revenue and Customs and Excise, the government's tax collection agencies," said Howard.

"It is clear that the ultimate blame for bringing the tax agencies into such disrepute must lie with the chancellor. It is also clear that Dawn Primarolo no longer has any credibility as a minister. She should go."

Treasury permanent secretary Gus O'Donnell is to head the review, which will cover all organisations dealing with tax policy and administration.

On the agenda will be the possible development of a closer working relationship between the two revenue agencies and the development of new technology in tax administration.

There will also be a move to ensure "consistent and effective enforcement of the law against those who do not pay their fair share, particularly those who make a business out of cheating the tax system".

And with officials working on strategic tax policy currently spread across three departments, a more co-ordinated approach to fiscal policy advice is being sought.

"Greater clarity will provide better certainty both for officials and ministers," said the Treasury.

The chancellor will set out initial conclusions and any next steps in this year's Pre-Budget Report.