HMRC's plan to consolidate its 170 offices across the UK into 13 large regional centres and 4 specialist sites was unrealistic, according to a report by the National Audit Office on management of the department's estate. The plan was over-optimistic about the availability of suitable properties and risked disruption by seeking to move or replace large numbers of staff too quickly. HMRC is now considering options including delaying moves to regional centres and revising the functionality, location and size of some of these centres.
HMRC announced its plan in 2015, which aimed to achieve significant reductions in its estate by 2020/21, when the 20-year services contract with Mapeley expires, thereby reducing running costs and providing for the new digital way of working. However, the NAO report found that HMRC’s estimate of its estate costs over the next ten years has risen by nearly £600 million (22%), more than half of which is due to higher than anticipated running costs for its new buildings. It now estimates cumulative efficiency savings by 2025/26 of £212 million, reduced from the £499 million estimated in November 2015. HMRC has also identified that slippage in the timetable for some regional centres had led to an ‘unmanageable peak of activity’ scheduled for 2019/20.
HMRC has indicated to the NAO that it will reach a decision shortly on what actions it will take to reduce business risks and stay within its funding up to 2020/21.
HMRC's plan to consolidate its 170 offices across the UK into 13 large regional centres and 4 specialist sites was unrealistic, according to a report by the National Audit Office on management of the department's estate. The plan was over-optimistic about the availability of suitable properties and risked disruption by seeking to move or replace large numbers of staff too quickly. HMRC is now considering options including delaying moves to regional centres and revising the functionality, location and size of some of these centres.
HMRC announced its plan in 2015, which aimed to achieve significant reductions in its estate by 2020/21, when the 20-year services contract with Mapeley expires, thereby reducing running costs and providing for the new digital way of working. However, the NAO report found that HMRC’s estimate of its estate costs over the next ten years has risen by nearly £600 million (22%), more than half of which is due to higher than anticipated running costs for its new buildings. It now estimates cumulative efficiency savings by 2025/26 of £212 million, reduced from the £499 million estimated in November 2015. HMRC has also identified that slippage in the timetable for some regional centres had led to an ‘unmanageable peak of activity’ scheduled for 2019/20.
HMRC has indicated to the NAO that it will reach a decision shortly on what actions it will take to reduce business risks and stay within its funding up to 2020/21.
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