As part of the Spending Review settlement in October 2010, HMRC made a
commitment that between now and 2014-15 the Department will:
- identify and make savings of 25%
- in return for re-investing over £900 million of those savings, bring in £7 billion in additional revenues a year by 2014-15 by transforming its work against avoidance, evasion and criminal attack. The overall impact of this is a 15% reduction in the resource budget, and a 25% reduction in capital spending compared to 2010-11
- reduce fraud and error in the tax credit system by £2 billion a year, and
• stabilise the new National Insurance and Pay As You Earn (PAYE) Service (NPS) and continue to reform the PAYE system by collecting tax and earnings information from employers more frequently to support the Government’s welfare reform agenda.
Meeting this commitment means making fundamental changes to how the Department operates – a massive and complicated task. The Department will be transformed through a coordinated Change Programme, ensuring all of the changes it makes fit together and that the changes take place in the right order.