Corporate report

Accounting Officer Assessment Summary: HMRC Trader Support Service Programme – contract extension

Published 3 October 2022

It is normal practice for Accounting Officers to scrutinise significant policy proposals or plans to start or vary major projects and assess whether they measure up to the standards set out in HM Treasury’s (HMT’s) Managing Public Money guidelines.

From April 2017, the government has committed to make a summary of the key points from these assessments available to Parliament when an Accounting Officer has agreed an assessment of a project within the government Major Projects Portfolio. The first Accounting Officer Assessment for this programme was published on 29 January 2021. This updated Accounting Officer Assessment has been completed in the light of a one-year contract extension for the service.

Background and context

On 23 December 2019, the Permanent Secretary for the Department for Exiting the EU (DExEU) advised that the government would be moving forward to implement the Withdrawal Agreement Bill (WAB) and the Northern Ireland Protocol (NIP), and to negotiate on the UK’s future relationship with the EU.

The Northern Ireland Protocol exists to ensure that the progress made by the people of Northern Ireland since the Belfast (Good Friday) Agreement is secured into the future. It also protects the EU position of operating a single market within the EU by not creating a border on the island of Ireland.

The Trader Support Service (TSS) is designed to meet the Northern Ireland Command Paper commitment published on 20 May 2020, for HMRC to provide extensive support to Northern Ireland traders. These plans were endorsed at the XO Star Chamber with the Chancellor of the Duchy of Lancaster (CDL), and HMT ministers on 29 June 2020.

The TSS was procured for 2 years until 31 December 2022, with the option of extending for 2 further periods, each of one year. We have assessed the medium/long-term options for the TSS and consider a one-year extension until December 2023 will be required.

Clear governance processes have been established for effective programme management. As part of Government Major Projects Portfolio (GMPP), the programme reports quarterly to the Infrastructure Projects Authority (IPA) on progress. An assessment of the programme’s progress will be published in the GMPP Transparency report.

Regularity

The programme was mandated by the government’s commitment to implement the Withdrawal Agreement Bill and the Northern Ireland Protocol. The programme did not require any additional legislation and continues to comply with Parliamentary requirements for the control of expenditure, with programme funds being applied only to the extent and for the purposes authorised by Parliament.

The TSS has been designed to address the key readiness challenges of the implementation of the Northern Ireland Protocol. Irrespective of the outcome of the new legislation or continued negotiations with the EU, we expect some declaration support will be needed in the medium term and the TSS will continue to support traders.

The programme adheres to the relevant HMT approval procedures.

Propriety

The programme continues to comply with Parliamentary requirements for the control of expenditure, with funds being applied only to the extent and for the purposes authorised by Parliament.

The programme has established a programme board as the key decision-making authority, attended by key stakeholders.

The TSS programme was reviewed as part of the IPA Gateway 0 Strategic Assessment in November 2021, with recommendations being implemented.

Value for money

The programme follows The Green Book methodology, including HM Treasury’s 5-case model. This involves developing a longlist of options and conducting an appraisal to draw up a shortlist of options before completing a full economic appraisal of the shortlisted options. Value for money is recognised as a key factor in the commercial strategy within the programme business case approved by HM Treasury. The preferred option offers the highest potential to meet critical success factors.

To support value for money, our commercial team have negotiated a new contract with increased flexibility, which will allow the service to respond to the Northern Ireland Protocol outcomes by scaling down capacity and cost if necessary. There is also the ability to completely terminate the service if required during the contract term (should TSS no longer be required).

Without this service there would be a significant additional regulatory burden on trade between NI and the mainland which could deter such trade.

Feasibility

The programme leadership, supported by delivery partners, have the skills and experience needed to achieve the programme deliverables within the required timeframe.

The programme regularly monitors capacity and resource requirements, progress against delivery plans, risks and dependencies.

The programme is subject to the requirements of the GMPP and is subject to review by the IPA. The programme was assessed in an IPA gateway review in November 2021, which provided an independent view regarding feasibility of the existing contract. The programme will go through a Gate 0/3 IPA review at the end of August 2022 to assess the feasibility of the contract extension.

Conclusion

As the Accounting Officer for HMRC I have considered my assessment of the TSS programme and on balance, the proposal is value for money and deliverable, I have approved it as of 18 August 2022. I have prepared this summary to set out the key points which informed my decision. If any of these factors change materially during the lifetime of this programme, I undertake to prepare a revised summary, setting out my assessment of them. This summary will be published on the government’s website (GOV.UK). Copies will be deposited in the Library of the House of Commons and sent to the Comptroller and Auditor General and Treasury Officer of Accounts.

Accounting Officer’s name: Jim Harra, Chief Executive, HM Revenue and Customs.

Signature:

Date of signing: 18 August 2022