Feeds

HMRC strops its chopper, eyes £235m IT slash plan

Plans to collect more taxes, cut own costs as it does so

The Power of One Infographic

HM Revenue and Customs is aiming to save £235m from changes to IT services as part of plans to cut its running costs by some 25 per cent over the next four years, says a report by the National Audit Office.

The document, "Reducing Costs in HM Revenue and Customs", says the department's annual running costs in 2010-11 were £3.6bn, and it has a target to reduce these by £1.6bn over the four years to 2014-15. In addition, it has to generate £7bn in additional tax revenues over the same period from re-investing £917m.

According to the findings, HMRC had a good understanding of spending on a number of areas, including IT, and its corporate services section had good unit cost information, for example on IT.

But the department had only limited information on the costs of its end-to-end processes and its servicing of different customer groups, and on the links between costs and value. This restricted its ability to assess long-term efficiency gains.

Amyas Morse, head of the National Audit Office, said: "Reducing running costs by £1.6bn over four years is a big challenge for HMRC.

"It is making progress, but there is no contingency in its plans. To achieve value for money, it needs to better define the service it is aiming for, improve its understanding of costs and develop its implementation plan."

This article was originally published at Guardian Government Computing.

Guardian Government Computing is a business division of Guardian Professional, and covers the latest news and analysis of public sector technology. For updates on public sector IT, join the Government Computing Network here.

Maximizing your infrastructure through virtualization

More from The Register

next story
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
MPs wave through Blighty's 'EMERGENCY' surveillance laws
Only 49 politcos voted against DRIP bill
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Delaware pair nabbed for getting saucy atop Mexican eatery
Burrito meets soft taco in alleged rooftop romp outrage
LightSquared backer sues FCC over spectrum shindy
Why, we might as well have been buying AIR
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.