Source · Select Committees · Public Accounts Committee
Recommendation 17
17
COVID-19, and HMRC’s role in the government’s response, has had a significant impact on the...
Conclusion
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
Government Response
Acknowledged
HM Government
Acknowledged
4.1 The government agrees with the Committee’s recommendation. Target implementation date: April 2021 4.2 The department was allocated £5.4 billion through the 2020 Spending Review. This included funding of: • £1 billion to reform and enhance UK’s customs system; • £146 million to extend the rollout of Making Tax Digital; and • £321 million to improve the agility and resilience of HMRC’s IT estate (including the modernisation of Valuation Office Agency’s IT systems and support for the 2023 Business Rates revaluation). The overall settlement was broadly similar to forecast spend in 2020-21. 4.3 The department is reviewing its 2021-22 priorities to ensure it successfully delivers its priorities and strategic objectives, and continues to be a trusted, modern tax and customs department. 13 4.4 The department is currently working through its plans for the next year, in line with its normal business planning process. This incorporates all aspects of HMRC’s delivery, from core tax and payments work through to activity to support government actions in response to the pandemic. In line with other Government departments, HMRC will be publishing their Outcome Delivery Plan (ODP) following the start of the 2021-22 financial year.