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Buying Solutions

Volume 717: debated on Monday 1 March 2010

Question

Asked by

To ask Her Majesty's Government how much was paid by HM Revenue and Customs and its agencies to (a) PricewaterhouseCoopers, (b) KPMG, (c) Deloitte, (d) Ernst & Young, (e) Grant Thornton, (f) BDO Stoy Hayward, (g) Baker Tilly, (h) Smith & Williamson, (i) Tenon Group, (j) PKF, (k) McKinsey and Company, and (l) Accenture, in each of the past five years for which information is available; how they monitor contracts with those firms; and how the department reports (1) during, and (2) at the end of contracts, to Buying Solutions. [HL2082]

HM Revenue and Customs (HMRC) spend information prior to 2006 is held on legacy HM Customs and Excise and Inland Revenue systems and is not available at the level of detail requested for the period 2005-06. Information is available at the level of detail requested for the periods 2006-07 onwards and is provided in the table below:

Service ProviderHMRC—Spend per financial year (£)

2006/07

2007-08

2008-09

2009-10 to date

Accenture

2,337,256

478,997

0

30,920

Baker Tilly

4,000

15,394

0

72,681

BDO Stoy Hayward

23,275

21,799

18,069

4,967

Deloitte MCS Ltd

7,300,231

444,735

7,517,609

11,570,451

Ernst and Young

185,517

106,429

2,358,492

3,803,793

Grant Thornton UK LLP

28,146

13,101

21,537

25,908

KPMG LLP

1,198,652

2,422,338

5,462,555

5,653,448

McKinsey and Company

0

0

0

0

PKF

69,680

87,704

138,827

65,957

PricewaterhouseCoopers LLP

1,302,253

828,427

2,949,391

2,032,219

Tenon

0

0

0

0

Smith & Williamson

0

0

0

0

The increase in expenditure in 2008-09 and 2009-10 is to support delivery in departmental transformation programmes: government banking, modernising PAYE processes for customers (MPPC), pacesetter/lean, data security and compliance and enforcement.

The Valuation Office Agency (VOA) is able to provide detailed information from 1 April 2005 and this is provided in the table below.

Service providerVOA—Spend per financial year (£)

2005-06

2006-07

2007-08

2008-09

2009-10 to date

Accenture

0

0

0

0

0

Baker Tilly

0

0

0

0

BDO Stoy Hayward

0

0

0

0

0

Deloitte MCS Ltd

0

0

0

0

708,093

Ernst and Young

0

0

0

0

0

Grant Thornton UK LLP

0

0

0

0

0

KPMG LLP

1,362,188

29,823

0

0

0

McKinsey and Company

0

0

0

0

0

PKF

0

0

0

0

0

PricewaterhouseCoopers LLP

1,245

1,111

0

0

0

Tenon

0

0

0

0

0

Smith & Williamson

0

0

0

Contracts awarded are monitored by the business area (within HMRC or VOA) receiving the services. The service providers are monitored against the agreed contract, which may include assessment of:

delivery against the agreed key performance indicators;

delivery of agreed outputs, within agreed timescales;

payment, in accordance with the agreed proposal and fees structure; and

skills transfer to staff (where appropriate).

HMRC and VOA may on occasion choose to use Buying Solution framework contracts but there is no reporting relationship to Buying Solutions since it acts as an agent to departments. HMRC and VOA hold regular business relationship meetings with Buying Solutions at director level but these do not involve individual contract spend discussion.