Recommendations & Conclusions
4 items
11
Conclusion
Thirty-Sixth Report - HMRC performance …
Acknowledged
“Building Our Future Locations” is one of the major programmes in HMRC’s transformation portfolio. It consists of creating 13 regional centres, redeploying staff and disposing of buildings.31 In terms of the impact of the COVID-19 pandemic on HMRC’s plans for these regional centres, the Department told us that it remains …
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“Building Our Future Locations” is one of the major programmes in HMRC’s transformation portfolio. It consists of creating 13 regional centres, redeploying staff and disposing of buildings.31 In terms of the impact of the COVID-19 pandemic on HMRC’s plans for these regional centres, the Department told us that it remains committed to reforming its office estate and its overall strategy has not changed. HMRC explained that its legacy of a large number of small offices no longer fits what it needs as a modern tax authority. There have been some delays to the programme because of the impact of the pandemic on the construction industry but the Department continues to make progress.32 Its Annual Report notes that 12 sites for its new regional offices have been secured, nine centres are being built and fitted out, and three are already open (in Croydon, Bristol and Belfast).33
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Government response AI summary
The government acknowledges the committee's conclusion (despite referring to it as a recommendation) and reiterates its satisfaction with the value for money of its estates strategy, confirming it will review future space requirements and work with the Government Property Agency to make freed-up space available …
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HM Treasury
13
Conclusion
Thirty-Sixth Report - HMRC performance …
Acknowledged
We asked the Department if it had taken on any more leases on a 25-year non- breakable basis in the last year. HMRC said its estate strategy had not changed in the last year and it did not think it had taken on any more 25-year leases but it would …
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We asked the Department if it had taken on any more leases on a 25-year non- breakable basis in the last year. HMRC said its estate strategy had not changed in the last year and it did not think it had taken on any more 25-year leases but it would need to check.36 It subsequently confirmed that the only new 25-year lease with no break since the April 2018 evidence session was for the regional centre in Nottingham, signed in November 2018. The only other new leases since April 2018 have been for specialist sites in Worthing and Ipswich. Worthing will be a 17-year lease and Ipswich (which is a refurbishment of part of an existing building) is three leases for different floors, each for 15 years with breaks after ten years.37
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Government response AI summary
The government acknowledges the committee's conclusion regarding new leases, reiterating its satisfaction with its estates strategy, and stating it will review future space requirements while working with the Government Property Agency to manage available space for other departments.
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HM Treasury
14
Conclusion
Thirty-Sixth Report - HMRC performance …
Acknowledged
Following our April 2018 session we had questioned whether the regional office deals HMRC had struck would offer sufficient flexibility to cope if plans did not work out as intended.38 In our 2020 evidence session HMRC told us that it expects to have more 31 C&AG’s Report, Figure 18 32 …
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Following our April 2018 session we had questioned whether the regional office deals HMRC had struck would offer sufficient flexibility to cope if plans did not work out as intended.38 In our 2020 evidence session HMRC told us that it expects to have more 31 C&AG’s Report, Figure 18 32 Qq 66, 69 33 HMRC, Annual Report and Accounts 2019 to 2020, HC 891, November 2020 34 Qq 68, 70–71 35 Committee of Public Accounts, The HMRC Estate, Fifty-third Report of Session 2016–17, HC 891 ,29 April 2017; Committee of Public Accounts, HMRC’s Performance in 2016–17, Twelfth Report of Session 2017–19, HC 456, 12 January 2018; Committee concerns raised in the April 2018 evidence session summarised in letter dated 6 June 2018 from Chair to HMRC Permanent Secretary 36 Q69 37 Letter dated 3 December from HMRC Permanent Secretary to Chair 38 Committee concerns raised in the April 2018 evidence session summarised in Letter dated 6 June 2018 from Chair to HMRC Permanent Secretary HMRC performance 2019–20 13 flexible working arrangements for its staff in the future, which will reduce its need for office space. It acknowledged that many more of its staff are likely to spend, say, two or three days a week working at home if they want to, and that this would affect the amount of office space it needed. However, the Department explained that in general its regional centres are “government hubs” that provide a great deal of flexibility in terms of who occupies them. For example, HMRC told us that it currently lends some of its estate in Croydon to the Department for Work & Pensions.39
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Government response AI summary
The government acknowledges the committee's conclusion on the flexibility of its regional office deals, defending its estates strategy and stating it will review future space requirements and work with the Government Property Agency to manage available space for other departments.
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HM Treasury
17
Conclusion
Thirty-Sixth Report - HMRC performance …
Acknowledged
COVID-19, and HMRC’s role in the government’s response, has had a significant impact on the Department’s operations. Most of HMRC’s staff are working from home and it has reallocated many of them to support the COVID-19 measures. HMRC told us that customer service performance levels suffered as soon as it …
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COVID-19, and HMRC’s role in the government’s response, has had a significant impact on the Department’s operations. Most of HMRC’s staff are working from home and it has reallocated many of them to support the COVID-19 measures. HMRC told us that customer service performance levels suffered as soon as it had to divert resources to deal with the implications of COVID-19.45 At the peak, in May 2020, 9,097 staff (16% of its total workforce of 58,592) were reallocated to COVID-19-related roles.46 When we asked HMRC why it had struggled to provide a good level of customer service even before the 39 Qq 66–68, 71 40 Q68 41 Letter dated 3 December from HMRC Permanent Secretary to Chair 42 Q 70–71 43 Q73 44 Letter dated 3 December from HMRC Permanent Secretary to Chair; Further detail on Places for Growth can be found on the Office of Government Property website available at: www.gov.uk/government/groups/office-of- government-property-ogp 45 Qq 20, 52–53; C&AG’s Report, para 13 46 Q 53; C&AG’s Report, para 2.22 14 HMRC performance 2019–20 emergence of COVID-19, the Department told us about problems in its recruitment in the first half of 2019–20, which meant headcount was approximately 8% below where it should have been.47
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Government response AI summary
The government acknowledges the committee's conclusion on the impact of COVID-19 on HMRC operations and customer service, outlining significant funding allocated through the 2020 Spending Review for customs, IT, and tax digitalisation, and stating it is reviewing 2021-22 priorities and will publish its Outcome Delivery …
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HM Treasury