Source · Select Committees · Public Accounts Committee
Recommendation 34
34
We have long-standing concerns about HMRC’s estates strategy.
Conclusion
We have long-standing concerns about HMRC’s estates strategy. In April 2017, long before COVID-19, this Committee raised concerns about HMRC locking government into holding larger properties for longer than needed. The Committee raised similar concerns again in January and April 2018. In January 2021, we concluded that HMRC’s estate strategy risks becoming woefully out of date. We recommended that HMRC review its estate strategy in light of the impact of COVID-19 on the demand for commercial properties.63 Since January 2021, HMRC has revisited its assumptions on attendance rates following changes in working patterns as a result of the pandemic. It now considers that attendance rate at its regional centres will reduce from its original estimate of around 67% of working days to around 50%.64 HMRC confirmed during the evidence session that it was planning for hybrid working to be permanent.65
Government Response
Not Addressed
HM Government
Not Addressed
8: PAC conclusion: Changed working practices have left HMRC with more office space than it needs. 8a: PAC 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. 8.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2022 8.2 HMRC anticipated changes in its office space requirements and negotiated flexibility such as assignment, subletting and sharing of occupation arrangements into its regional centre leases, which are in key locations across the UK. The department will continue to work with the Government Property Agency (GPA) and the Places for Growth Programme in the Cabinet Office to ensure that any surplus office space in staffed buildings across the HMRC estate is not left vacant. 8.3 HMRC will report back to the Committee by the end of July 2022.