HMRC Annual Accounts 2020-21

Changed working practices have left HMRC with more office space than it needs.

Changed working practices have left HMRC with more office space than it needs. We have long standing concerns about the flexibility of HMRC’s estates strategy which is seeing it move to 13 regional centres with long-term non-breakable property leases. The shift to hybrid working caused by the pandemic has reduced … Read more Changed working practices have left HMRC with more office space than it needs. We have long standing concerns about the flexibility of HMRC’s estates strategy which is seeing it move to 13 regional centres with long-term non-breakable property leases. The shift to hybrid working caused by the pandemic has reduced the office space HMRC needs. HMRC is already renting out some spare capacity to other government departments in its regional centres. HMRC relies on the Cabinet Office to identify suitable alternative users of its spare space and encourage them to use it. HMRC told us the system is working well and there is a queue of organisations wanting to use the spare capacity in its offices. We remain concerned that changes in the commercial property market could leave HMRC with unused spare space in the future. Recommendation: HMRC should: • work with Cabinet Office to draw up a plan for how they intend to make sure that spare HMRC office space is not left vacant, and write to the Committee explaining the plan within 6 months of this report; and • each quarter, report the amount and cost of empty space in its estate. HMRC Performance in 2020–21 9 1 Managing error and fraud, compliance and tax avoidance Show less