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Revenue and Customs

Volume 506: debated on Monday 22 February 2010

To ask the Chancellor of the Exchequer what the costs, including redundancy payments, and the benefits, including increased tax yield and transaction savings, have been of HM Revenue and Customs' transformation programme in each year from 2006-07; and what the net change in the number of staff employed has been in each year. (313699)

[holding answer 28 January 2010]: HM Revenue and Customs' (HMRC) major transformation initiatives are delivered through the Departmental Transformation Programme (DTP), established in October 2006. The transformation programme has led to improved customer service, such as reduced administrative burden, faster responses to customer queries and an expansion in our online services to individuals and businesses.

The information requested is provided in the following table:

£ million

Transformation costs1

Additional tax yield

Transaction savings2

2006-07

429.4

660.0

n/a

2007-08

421.7

714.8

14.2

2008-09

647.0

672.3

18.4

2009-103

428.1

2,100.1

43.6

Total

1,926.2

4,147.2

76.2

1 Transformation costs include the cost of voluntary staff releases made as part of the Workforce Change programme, when it was part of the Departmental Transformation Programme in 2008-09. 2 Transaction savings are defined as non-paybill savings in operational costs achieved through efficiencies, or improvements to our processes. 3 2009-10 figures are forecast for the year, rather than actuals to date.

Transformation is expected to have long-term benefit, resulting in tax yield benefits continuing to accrue in future years.

The information requested is provided in the following table:

Headcount

Head count year-on-year change

Head count change to date

Full-time equivalent (FTE)

FTE year-on-year change

FTE change to date

1 April 2006

97,332

n/a

n/a

89,702

n/a

n/a

1 April 2007

96,511

-821

-821

88,936

-766

-766

1 April 2008

90,961

-5,550

-6,371

83,828

-5,108

-5,874

1 April 2009

88,875

-2,086

-8,457

81,160

-2,668

-8,542

1 January 20101

79,620

-9,255

-17,712

72,147

-9,013

-17,555

1 Figures for 2009-10 include the transfer of 4,803 staff (4,628 FTE) from HMRC to the UK Border Agency.

Note: These figures relate to headcount and FTE numbers on the 1 April each year, except the current year where the figures are based on figures at 1 January 2010.

To ask the Chancellor of the Exchequer what estimate he has made of the loss to the Exchequer arising from official error on the part of HM Revenue and Customs staff in each of the last five years. (317299)

The information requested is available only at disproportionate cost, as the figures for all HMRC Official Error cases are not collated centrally.

Total revenue losses for HMRC are shown on p100 (table 8.2 ) of HMRC's Trust Statement, available at:

http://www.hmrc.gov.uk/about/reports.htm

It is not possible to disaggregate figures of Official Error cases from the totals shown.