Revenue chairman Paul Gray resigns

LONDON (Reuters) - The chairman of the Revenue and Customs tax authority (HMRC) Paul Gray has resigned amid reports of data going missing, in another blow for Prime Minister Gordon Brown's government as it reels over the Northern Rock crisis.

A spokesman for HMRC said on Tuesday that Gray, who had been in the job for just nine months, had resigned. The spokesman declined further comment but Chancellor Alistair Darling will make a statement on the matter at 3:30 p.m.

"There has been a big data loss," said a government source who declined to be named. British media reported that child benefit records of seven million families were missing.

"Let's not forget that HMRC is the prime responsibility of the chancellor, so he's got some explaining to do this afternoon," said Michael Fallon, an opposition Conservative member of parliament.

Brown's popularity has sunk in the last few weeks and the government is facing heavy criticism over the crisis at Northern Rock, which suffered Britain's first bank run in more than a century in September.

The Treasury is now involved in negotiations to find a buyer for the mortgage lender which still depends on the government for funding.

Gray, a career civil servant and economist, was appointed deputy chairman of HMRC in September 2006 and his position as chief was made permanent in February.

The tax authority has already taken a lot of criticism in recent years for its handling of tax credits and VAT fraud.

(Reporting by Kate Kelland and Sumeet Desai; Editing by Fiona Shaikh/David Stamp)