Neighbours of Captain Sir Tom Moore’s daughter and her husband gave a mixed reaction as the Charity Commission published a highly critical report about the running of the Captain Tom Foundation.

The charities watchdog found there had been repeated instances of misconduct by the veteran’s daughter, Hannah Ingram-Moore, and her husband Colin.

These included a misleading implication that donations from book sales would go to the foundation, when proceeds of a £1.4 million book deal were instead paid to their company Club Nook.

The report said no donation had been made to the charity.

Small business owner Sam Barnes said, referencing Captain Tom’s charity fundraising during the Covid-19 pandemic, that “it was nice when it happened”.

“When it was all going on it was nice for the village,” said the 34-year-old, who lives near to the Ingram-Moores in Marston Moretaine, Bedfordshire.

“Then we soon realised they were cheating the system somewhere, got greedy early.”

But he said he “couldn’t really care less any more”, adding: “They’re not going to go to jail or have to repay it.”

Retired security officer Dave Miller, 75, said “it’s just a shame”.

“Maybe if she gave half of it to charity or something nobody would be hounding her,” he said.

The Ingram-Moores said in a family statement that the book publisher “paid Captain Sir Tom a fee, it was his and he decided what to do with it”.

They stressed that they “never took a penny” from public donations when Sir Tom raised £38.9 million for NHS charities by walking laps of his garden during the coronavirus lockdown, and that the books were separate.

The Charity Commission report points out that the prologue of Captain Tom’s autobiography, Tomorrow Will Be A Good Day, is attributed to the veteran and suggests he thought funds from the book would flow through to the foundation.

Neighbour James Ellis said that if it was the veteran’s wish for the family to keep the money from the book then he does not take issue.

“I don’t think they’re crooks in any way,” said the retired engineer, 69.

“It’s been left to them, it’s his will isn’t it? Their inheritance in a way.

“They’ve already done enough.”

He added that “people are getting a bit gripey” about the book proceeds “but £40 million went to the NHS” from Captain Tom’s fundraising when he walked laps of his garden in lockdown.

There was no answer at the Ingram-Moore family home on Thursday, with an intercom at the gate ringing through to a voicemail service.