Public Service Agreements (PSAs),
Performance and Efficiency Targets
HMRC PSAs and Performance (including former IR and HMCE)
Introduction and Efficiency Targets
It was announced in the 2004 Budget that HM Customs & Excise and the
Inland Revenue would be integrated to form a single department, HM Revenue
& Customs (HMRC). In the 2002 Spending Review (SR02), Inland Revenue and
HM Customs & Excise were set separate PSAs. In the 2004 Spending Review
(SR04), they were set joint targets which became the PSA for HM Revenue &
Customs from April 2005.
The 2004 Spending Review also set us challenging targets to achieve efficiency
savings, and we are committed to relocating posts out of London and the South
East.
The 3 main Efficiency targets (excluding Valuation Office Agency) are as
follows:
- By April 2008 to achieve a gross reduction of 16,000 FTE* posts (set
against a revised 1 April 2004 baseline of 97,755 FTE’s) and a net
reduction of 12,500 FTE posts, allowing for the redeployment of 3,500 posts
to front line areas eg. VAT strategy, counter terrorism and spend to save.
(4 years 2004-05 to 2007-08).
- By April 2008 to position HMRC to deliver at least £507m in annual
efficiencies (set against a 2004-05 baseline of £4,117m**) of which
at least half must be cash-releasing to allow resources to be recycled in
priority programmes (3 years 2005-06 to 2007-08).
- By April 2008 to relocate 1,950 posts out of London and the South-East;
with a further 2,300 posts to be relocated by April 2010 – bringing
the total to 4,250 (Lyons).
*FTE= Full Time Equivalent
**This figure excludes RCPO and SOCA and the latter transfer has not been
fully finalised and so it does not include estates and other services costs
which will probably be less than £13m.
