NAO: HMRC service levels in doubt as cuts bite

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HMRC gained a cautious pat on the back from the National Audit Office this week for beating its savings targets for 2011-12, but doubts still linger around the tax department’s ability to sustain service levels as it cuts further into its running costs.

The NAO’s Progress on Reducing Costs is the latest assessment of HMRC’s savings programme over the last 18 months. In challenging circumstances, HMRC made savings of £296m in 201112, exceeding its target by 19%, the study found.

HMRC savings

• 5% reduction in HMRC running costs between 2010-11 and 2011-12

• £296m cost savings made in 2011-12

• £585m remaining savings to be made by 2014-15

• 25% savings target for 2010-15

• 15% n...

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13th Feb 2013 13:27

MERRY GO ROUND

THE RATIONALISATION (OR EVEN ABOLITION!)OF CALL CENTRES AND NON USE OF 0845 NUMBERS WITH TRANSFER OF INCOMING/OUTGOING CALLS TO REGIONAL IF NOT LOCAL OFFICES MANNED BY TECHNICAL STAFF WOULD BE A GOOD PLACE TO START...

.... AND DOWNSIZING THE TELEPHONE SERVICE SO INDIVIDUAL TAXPAYERS NEED TO VISIT THEIR LOCAL OFFICE (OR LIBRARY LIKE OUR NEW POLICE STATIONS!) SINCE HMRC CALL CENTRE STAFF ARE NOT QUALIFIED TO GIVE ANYONE ADVICE!-

 

YET AT THE SAME TIME I SEE ACCROSS THE COUNTRY THE HMRC ARE RECRUITING "CASEWORKERS" WHICH IS THE LATEST JARGON FOR TAX INSPECTORS/TRAINEE TAX INSPECTORS ON THE CHEAP

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MP Margaret Hodge told HMRC to "get a grip" on their failure to reach the tax credit fraud and error target. 

She seemed less than impressed with the Revenue, who she said missed their target "by a mile". 

"HMRC has made little progress in other areas," she said. 

"[The Revenue] needs to develop a rigorous plan for rooting out error and fraud in each and every category if it is to achieve a sustainable reduction in losses."

 

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By Vinoo
14th Feb 2013 20:43

With low morale among majority of staff HMRC will not be able to meet their targets.HMRC's process of "Savings" is probably negative if you formate it with "True cost of savings." Over the years HMRC have lost experienced staff.

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