Abu Hamza is said to have recruited for the crime syndicate that sent money to Osama bin Laden, above, and had links to 7/7 bomber Shezad Tanweer

Gangsters have stolen billions of pounds of British taxpayers’ money and used tens of millions to fund terrorism, according to police and intelligence files.

A network of British Asians based in London, Buckinghamshire, Birmingham, northwest England and Scotland mounted VAT and benefit frauds against the exchequer over two decades and made further gains from mortgage and credit card fraud targeting banks and individuals. The group netted an estimated £8bn in public money alone.

The gang, which has links to the 7/7 London bombings in which 52 people died, is alleged to have sent 1% of its gains, or £80m, to al-Qaeda in Pakistan and Afghanistan, where it funded madrasahs, training camps and other terrorist activities, according to the leaked files.

Secret intelligence held by MI5