A businessman owned a Spanish holiday home, a speedboat, luxury cars and went on exotic holidays - all while claiming state benefits.

A Court heard that Roger Tate, 67, drove a Jaguar and a BMW and had a speedboat moored in Marbella while receiving almost £40,000 Income Support and Housing and Council Tax benefit.

Tate, of The Old Barn, Old Bramhope Lane, Bramhope, pleaded guilty at an earlier hearing to defrauding the taxpayer out of £38,493 between April 3, 2000, and June 17, 2003.

Prosecutor Elizabeth O'Hare told Leeds Crown Court yesterday that Tate had now repaid all the money he dishonestly obtained.

She said he began claiming Income Support in April 2000 because his business, Roger Nigel Tate Limited, was in difficulty.

He did not reveal to benefit officers that he owned a flat in Spain recently valued at £123,000.

Miss O'Hare said the Income Support claim provided a gateway to receiving Housing Benefit and Council Tax benefit.

Tate falsely claimed that his son, Philip, was charging him rent on his home, the court heard.

Tate received undisclosed payments into his personal bank account of almost £40,000 while claiming from the State and he also received money from his business, Miss O'Hare said.

"Income Support is for people in desperate straits," she added.

Miss O'Hare said that Tate's once ailing business was thriving by 2003 and he was "well able to fund his own lifestyle".

Mr Bryan Cox said in mitigation that Tate was of good character and was now essentially ruined financially.

"He feels acutely the shame and the humiliation of these proceedings," he said.

He said that as well as repaying all the benefit money, Tate now wished to pay the £10,000 prosecution costs. "He's done all possible to make reparation," said Mr Cox.

Mr Cox said Tate was dependent on financial help from his sons and his claim for Income Support was genuine at the outset.

Judge Alistair McCallum adjourned sentencing until Monday.