Recommendation 35

Given the change in HMRC’s need for office space, and wider changes in the commercial property market, we asked HMRC whether its estate strategy was right for the future. HMRC told us its strategy was the right one and was part of making HMRC fit for the future by providing a high-quality estate. It also told us that the quality and location of the estate made it easy to offer to other government departments, as part of the broader move of civil service roles from London into other parts of the UK. HMRC said it had already let space, and there was currently a queue of organisations also wishing to let space.66 It said it has leased 583,000 meters squared of space of which 107,000 meters squared (18%) has been “signed up to” by Other Government Departments. HMRC expects the amount of space it sublets in 2023–24 to increase to 117,000 meters squared (23% of the total space it expects to lease).67