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Revenue and Customs: ICT

Volume 488: debated on Tuesday 24 February 2009

To ask the Chancellor of the Exchequer what the (a) original projected cost and (b) implementation milestones of HM Revenue and Customs’ new IT system were; how much has been spent on the system; what milestones have been met; how much remains to be spent; and what the remaining implementation milestones are. (258011)

The contract with Capgemini is not for a single new IT system. It is for the maintenance of a wide range of existing IT services (including application maintenance, automated data capture, data centre services, desktop service, printed output, Wide Area Network (WAN) and telecoms services) and the development and enhancement of new systems that arise from ministerial and other business requirements.

The cost of the IT services contract with Capgemini (Aspire) when it was signed was £3.3 billion but it has subsequently been significantly expanded to take account of additional demands and changing business requirements. For example, HM Revenue and Customs’ (HMRC) contract with Capgemini now incorporates the IT services provided to the former HM Customs and Excise by Fujitsu as well as the delivery of additional projects to implement the Carter Review recommendations, modernise the Pay-As-You-Earn (PAYE) system and improve HMRC’s internal Enterprise Resource Planning (ERP) system as part of the Department’s Transformation Programme.

From July 2004 to December 2008 HMRC has spent £3.2 billion for all IT services provided including a substantial portfolio of change and legislative initiatives. The balance to be spent over the remaining years of the contract is estimated to be £4.5 billion.

To ask the Chancellor of the Exchequer what the original contract completion date was for HM Revenue and Customs’ IT system being implemented by Capgemini; and whether the completion date has since been extended. (258127)

The original contract with Capgemini was scheduled to be completed in June 2014 but at the end of 2007 it was agreed with Capgemini that the contract would be extended for a further three years to June 2017.