Press Release - HM Revenue & Customs’ transformation
programme
18 July 2008
Eighteen months into an ambitious programme to transform HMRC,
the Department has spent £851 million and achieved estimated
benefits of £2.4 billion. These benefits are mainly from activities
already underway when the programme began. Changes to funding have
led the Department to revise and postpone parts of the programme,
and the overall benefits expected carry high levels of
uncertainty.
A report out today by the National Audit Office found that most of
the £11.5 billion benefits are expected to come from an increased
tax yield (£6.3 billion) and transaction savings to business and
government (£4.1 billion). The estimate of additional tax yield is
volatile and assumes collection in full.
The Department has made progress in developing its systems and
processes and enhanced its project and financial management skills
to deliver the programme. For most programmes it has developed
governance processes and set out responsibilities for managing the
projects. It delivered, as planned, one major programme in the
first 18 months and has implemented parts of other programmes. It
is taking action to improve implementation plans and milestones,
risk management and contingency plans for some other
programmes.
A major driver of the programme is the Department’s targets to
achieve efficiency savings of 5 per cent a year. Changes in funding
and content of the programme during 2007-08 delayed the completion
of the business cases for individual programmes. The Department has
approved business cases for 10 programmes and plans to complete the
remaining three over Summer 2008. Finalising the component parts of
the transformation programme is a critical step, particularly as
the Department expects the funding available to peak in 2008-09 and
reduce thereafter.
Changing the culture of the Department to become more
customer-focused is an important part of the programme. In any
change programme staff satisfaction might be expected to decline
and recent surveys indicate morale remains at a low ebb. The
Department needs to more actively demonstrate the benefits to its
staff and manage the expectations of customers as many of the
improvements for them are scheduled for 2011 and beyond.
Tim Burr, head of the National Audit Office, said:
“This is an ambitious programme of change with the potential to
provide significant benefits in terms of tax yield and improvements
for the Department’s customers. To succeed the Department must
determine what it expects the programme to achieve with the
resources available. It should also establish that the planned
benefits are realistic and confirm each year that those achieved
are robust.”
Notes for Editors
- HMRC plans to spend £2.7 billion from 2006-07 to 2010-2011 on a
programme to provide a more efficient, customer-focused
organisation, making it easier for taxpayers and claimants to
fulfil their obligations and for the Department to detect and deal
more effectively with wilful non-compliance. It expects to achieve
benefits valued at £11.5 billion.
- Press notices and reports are available from the date of
publication on the NAO website, which is at www.nao.org.uk. Hard
copies can be obtained from The Stationery Office on 0845 702
3474.
- The Comptroller and Auditor General, Tim Burr, is the head of
the National Audit Office which employs some 850 staff. He and the
NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 36/08
All enquiries to Donna Watson, NAO Press Office: Tel: 020 7798
7038
Mobile: 07917 555 388