HM Revenue & Customs (HMRC) is to begin a programme of consultation in order to deliver a more effective service to local businesses and individuals. The series of consultations on the future shape and direction of the department will begin in December.

HMRC was created in April 2005 following the merger of the former Inland Revenue and HM Customs & Excise, providing the opportunity to create a modern, effective revenue collection and enforcement department. These consultations are designed to progress the consolidation of the HMRC estate and the co-location of staff nationwide following the merger.

Paul Gray, Acting Chairman of HMRC said:

“Today's announcement sets out the modernisation and transformation that HMRC wants to undertake over the next five years to put our taxpayers, claimants and other customers at the heart of everything we do, thereby improving efficiency and effectiveness.

“The creation of HMRC, where Customs and Excise and the Inland Revenue were integrated, means the new organisation now has more space than it needs. We are taking the opportunity to save taxpayers’ money by operating with fewer buildings in a more coordinated cost efficient way. We are inviting all staff to comment on our proposals and to fully participate in our programme of change.”

HMRC has a government target of 12,500 net staff savings by April 2008, which it is on its way to meet and is working towards a target to reduce annual estates costs by £30 million by then. The merger has provided the opportunities to achieve these targets. The department now has more buildings than it needs, and co-locating staff makes good business sense whilst providing the opportunity to streamline processes and eliminate duplication.

Notes for editors

1. Further details on the consultation process and updates on the plans will follow.
2. Visit http://www.hmrc.gov.uk for more information, including a list of HMRC buildings and staff numbers

Issued by HM Revenue & Customs Press Office Website http://www.hmrc.gov.uk