What is interesting about the report is the discussion on the spending cuts:
35. A number of witnesses, ranging from professional bodies through to staff unions, were concerned about the implications of further reductions in resources at HMRC. In written evidence the ACCA were pessimistic about the impact of the spending settlement:
ACCA simply cannot see how HMRC can hope to even maintain current service levels, with reduced staff and budget. The aim of reducing the tax gap is worthy, but if reduced funding leaves HMRC unable to address the basics of maintaining a service for compliant taxpayers the potential damage to the economy and reputation of the United Kingdom is immense.
They compared the situation to the private sector and considered that it was:
[...] hard to imagine any commercial environment where a department would be expected to increase output of an ever more complicated product while being forced to cut staff numbers, operate on reduced funds and implement relentless restructuring of its business model.[37]
36. HMRC's unions were positive about the reinvestment in compliance work.[38] However, Graham Black, President of ARC, painted a bleak picture of the impact of further reductions in resources at HMRC. "I think management are struggling; I think the Department is struggling." He told us that the continuous cuts were having a negative impact. "Every organisation goes through periods where they have to rationalise and take some cuts, but we will have had 10 years of nothing but cuts."[39]
The reason this is interesting is in the BBC report Clasper is clear that in the context of HMRC's inadequate performance, particularly the poor correspondence record, it is reported that the response has been to recruit "1,000 extra contact centre advisers to handle calls during "exceptionally busy periods".
That sounds as though it is a prudent movve but I could have sworn there was a recruitment freeze, but perhaps I'm mistaken.
