HISTORIC PRESS RELEASE : Chancellor announces major review of Inland Revenue and HM Customs and Excise [July 2003]

The press release issued by HM Treasury on 2 July 2003.

A major review of the organisations dealing with tax policy and administration was announced by Chancellor Gordon Brown today.

The review will report to Treasury Ministers and be chaired by Gus O’Donnell, Permanent Secretary to the Treasury working with the revenue departments and their Chairmen. It will examine the best organisational arrangements to achieve Government’s tax objectives both now and into the future.

Launching the Review, the Chancellor said:

“Since 1997, Inland Revenue and HM Customs & Excise have worked effectively with the Treasury to play a key role in support of this Government’s reforming agenda. Their record is one of success and a tribute to the staff of the revenue departments and to their Chairmen, Sir Nicholas and Sir Richard. The revenue departments do a first rate job and this review is intended to build on their success to ensure we make the best of the resources that we have.

“The primary focus of the review will be making public service delivery more effective and efficient. It will be conducted in discussion with unions and other stakeholders.”

Specific points the review will cover will include:

• ways to enhance service delivery to taxpayers and how these are most effectively ensured.  Inland Revenue and Customs & Excise together deliver some of the most important functions for the Government, for the public, and for the business community.  They have a very large number of customers in common.  The review will have a particular remit to examine whether, through closer working between the revenue departments or through organisational change, costs to honest taxpayers and compliance costs to businesses can be reduced;
• the coherence of administrative systems, including information and efficient use of resources across the broad area of tax administration taking into account future technological developments which will open new avenues for enhanced services;
• how best to ensure consistent and effective enforcement of the law against those who do not pay their fair share, particularly those who make a business out of cheating the tax system.  As part of this review we will examine work being done separately by the Government on the links between tax organisations and the law enforcement agencies;
• the most appropriate structure for delivering policy advice to Ministers.  Currently officials working on strategic tax policy questions are spread across three departments.  A more co-ordinated approach to fiscal policy advice is desirable, and the review will look at how we can best create a focus for tax policy work;
• a new framework for accountability for those working on tax, to set out more clearly the roles and responsibilities of all those involved.  Greater clarity will provide better certainty both for officials and Ministers.  The review currently being conducted by Gus O’Donnell which was announced in the Government’s response to the Fourth Report 2003 of the Treasury Select Committee will form part of this work.