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.
• 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...
About John Stokdyk
John Stokdyk is the global editor of AccountingWEB UK and AccountingWEB.com.