Treasury Committee puts the boot into HMRC

A report published by the House of Commons Treasury select committee has claimed HMRC’s “unacceptable” quality of service failed due to a number of factors, including “overly ambitious expectations for IT projects, sustained cuts to resources, a management culture of ‘command and control’, increasingly complex tax legislation and the legacy of the merger [between Inland Revenue and HM Customs & Excise].”It highlighted a number of areas of “serious” concern, including “Unacceptable difficulties contacting HMRC by phone during peak periods,” and, “Endemic delays in responding to post”. The report, Administration and effectiveness of HM Revenue and Customs (PDF download also available), said the organisation would face further difficult years as it moves to resolve open cases in PAYE and “further ambitious IT upgrades”. As a result, the committee warned it would monitor the performance of HMRC during the remainder of the parliament, and “[expects] the department to deliver where substantial improvements have been promised.” The Treasury committee’s report into HMRC follows on from others published in recent weeks, including one from the National Audit Office, which concluded the organisation’s planned £1.6bn reduction in running costs represents “a big challenge”. According to the earlier NAO report, HMRC is making progress but warned “it needs to better define the service it is aiming for; improve its understanding of costs; and develop its implementation plan [if it’s to achieve value for money].”