HMRC counting the pennies after job cuts

Stat of the day: £1.1bn - How much tax has been lost because of job cuts at HMRC.

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Last Updated: 09 Oct 2013

Job cuts at HM Revenue & Customs may have ended up costing cost the organisation. The Public Accounts Committee (PAC) says tax collection was £1.1bn lower than expected because of job cuts at the tax-collecting service.


PAC says the £1.1m shortfall amounted to about £10 in tax lost for every £1 in running costs saved, and it questioned whether the decision to cut staff numbers involved represented value for money for the taxpayer. HMRC has cut 3,300 posts over the last five years, and another 10,000 are expected to go in the next few years as it attempts to cut costs.


But there was some praise for the service – after upping the ante on tax avoiders, HMRC brought in an extra £4.32bn over the five years. MPs said it was a good return on the £387m invested.

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