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.

HP ProLiant Gen8: Integrated lifecycle automation

More from The Register

next story
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
UK government officially adopts Open Document Format
Microsoft insurgency fails, earns snarky remark from UK digital services head
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
MPs wave through Blighty's 'EMERGENCY' surveillance laws
Only 49 politcos voted against DRIP bill
Help yourself to anyone's photos FOR FREE, suggests UK.gov
Copyright law reforms will keep m'learned friends busy
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
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.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
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.