Departmental Strategic Objectives – Comprehensive Spending Review 2007

HM Revenue & Customs, like other government departments, has in the past agreed Public Service Agreements (PSAs) with HM Treasury. These set out, at high level, what we will deliver in return for our funding. The current set of PSAs to which the Department is contributing cover the period 2005-06 to 2007-08 and are published at Public Service Agreements 2005-06 to 2007-08 pages.

For the next Spending Review period (CSR 07) effective from 2008-09 to 2010-11, each government department has developed a set of Departmental Strategic Objectives (DSOs) to demonstrate their core business objectives, in addition to contributing to a number of new cross-government PSAs.

HMRC’s DSOs for the Comprehensive Spending Review 2007 period are:

The DSOs are designed to support the strategic direction of the department which will put customers at the heart of everything we do, by understanding their needs and responding to their behaviours and expectations. Over the next three years we intend to build on the work we already do to support people and businesses, helping them to pay what they owe and receive what they are due. We intend to make it as easy as possible for our customers to get it right whilst protecting society by dealing firmly with anyone who intentionally avoids their responsibilities.

DSOs and their associated performance indicators will provide a means of assessing and demonstrating that the department has met its key objectives to manage the whole of the business effectively during the spending review period. More information on how HMRC will be tracking its performance against the DSOs is available by following the links above.

For each DSO, HMRC is aiming to build on its performance against the stretching targets set at Spending Review 2004. Detailed work is under way to establish baselines and levels of performance which will be attached to these indicators.

Following the creation of the new Home Office agency, the UK Border Agency (UKBA), DSO 3 responsibilities are expected to transfer to the UKBA in due course. However, policy on customs and tax matters and associated processing will remain within HMRC.

HMRC will be undertaking a programme of service transformation that will further increase efficiency in order to maintain its high standards of service. This will enable them to deliver their priorities within budgets that reduce in real terms by 4.9 per cent each year over the CSR 2007 period as part of the Government’s wider Value for Money initiative.

These DSOs will also support HMRC’s contribution to the new set of Government PSAs for the CSR 2007 period. These PSAs, already in the public domain, refer to high level objectives set by the Government and shared across government departments. HMRC will be a delivery partner for seven of the Government’s PSAs for the CSR2007 period. These are to:

  • promote better health and wellbeing for all
  • deliver a more effective, transparent and responsive Criminal Justice System for victims and the public
  • ensure controlled, fair migration that protects the public and contributes to economic growth
  • halve the number of children in poverty by 2010-11, on the way to eradicating child poverty by 2020
  • reduce the harm caused by alcohol and drugs
  • deliver the conditions for business success in the UK
  • reduce the risk to the UK and its interests overseas from international terrorism

In addition, HMRC will also contribute to the Government’s Service Transformation Agreement.

DSO 1 - Improve the extent to which individuals and businesses pay the tax due and receive the credits and payments to which they are entitled.

In achieving this DSO, HMRC’s key outcomes are to:

  • increase tax and National Insurance contributions actually received relative to the amounts that should be received
  • reduce the level of incorrect tax credit payments made as a result of error and fraud as a percentage of finalised entitlement
  • maintain take-up of entitlements to tax credits and Child Benefit

To help the department make sure it’s on track to achieve this objective, HMRC will be setting Key Performance Indicators (KPIs) for the following core areas of its business:

  • aggregate level of losses for VAT, excises, direct tax and National Insurance contributions taken together
  • level of tax credit error and fraud, as a percentage of finalised entitlement
  • take up of Working Tax Credit
  • take up of Child Tax Credit and Child Benefit

DSO 2 - Improve customers’ experiences of HMRC and improve the UK business environment

In achieving this DSO, HMRC’s key outcomes are to:

  • improve customers’ perception of their experience of dealing with HMRC
  • reduce administrative burdens on business
  • make Business Link the prime online informational and transactional channel for businesses with government
  • improve the quality of processing in large volume business areas
  • maintain correctness of advice and information given and actions taken in respect of contact from customers

To help the department make sure it’s on track to achieve this objective, HMRC will be setting KPIs for the following core areas of its business:

  • customer perception of their experience of dealing with HMRC
  • the administrative burden of forms and returns on business customers
  • the administrative burden of audits and inspections on compliant business customers
  • access to business facing content and business facing transactions from Business Link
  • accuracy of processing in large-volume business areas
  • timeliness of processing in specific areas
  • correctness of advice and information given, and actions taken, in respect of contact from customers

DSO 3 - Reduce the risk of the illicit import and export of material which might harm the UK’s physical and social well-being

In achieving this DSO, HMRC’s key outcomes are to:

  • maintain the level of disruption of the attempted import and export of illicit drugs, products of animal origin, and other illicit goods
  • contribute to Government objectives on counter terrorism by maintaining the level of operational performance in screening traffic entering the UK for radiation

To help the department make sure it’s on track to achieve this objective, HMRC will be setting Key Performance Indicators* for the following core areas of its business:

  • seizures of heroin and cocaine
  • seizures of products of animal origin
  • level of interventions in support of Serious Organised Crime Agency (SOCA)
  • screening of traffic entering the UK for radiation

*DSO 3 responsibilities are expected to transfer to the UKBA in due course. The indicators may subsequently be adjusted or expanded with the formal establishment of the UKBA.