David Ruffley is a member of the Treasury Committee that has released a report into the Administration and Effectiveness of HMRC that found there is considerable dissatisfaction among the public and tax professionals with the service provided by the Department. The Committee is concerned that if this continues it may undermine respect for the tax system.

David said:

'Following an inquiry, the Treasury Sub-Committee, the report identified serious concerns in a number of areas, including:

o Unacceptable difficulties contacting HMRC by phone during peak periods;

o Endemic delays in responding to post; and

o An increasing focus on online communication that may exclude those without reliable internet access.

The Committee recognised that the Department performs a crucial role and operates under significant external pressures including continuing resource reductions, deficiencies in tax legislation and the legacy of the merger. It acknowledged the commitment of management to tackling these problems and the dedication and professionalism of HMRC staff. However, it concluded that the Department has a difficult few years ahead of it, as it attempts to improve its service to taxpayers and benefits claimants, stabilise the PAYE system and introduce Real-time information.

The Sub-Committee is holding further hearings on HMRC's compliance work, and the Committee may report on this later in the year.

The Committee made recommendations in the following areas:

Improving the service provided by contact centres, particularly in relation to escalating complex queries and providing alternatives to 0845 numbers;

Providing robust alternative to online contact, including more cost-effective ways of providing face-to-face advice;

Ensuring greater awareness of the impact of process changes on individuals and businesses, in particular recommending senior staff spend time with tax practices, charities and businesses;

Ensuring reductions in resources are managed in a way that is commensurate with the enabling IT and process improvements and minimises the loss of Departmental tax expertise;

Reviewing the division of responsibilities between HMRC and HM Treasury in relation to making tax policy, to ensure practical considerations are taken into account at the earliest possible stage;

Better targeting of letters that threaten serious consequences against individuals;

Having the National Audit Office externally audit preparations for Real-time Information, to ensure Ministers can be held accountable for progress against the Government's ambitious timetable; and

Examining how the Department can achieve better accountability around the settlement of large tax cases.'

David Ruffley MP continued:

'This report is a damning condemnation of the way HMRC carries out its day to day operations and how it has previously administered the tax and tax credits system. I have had to contact HMRC on hundreds of occasions over the past couple of years simply because they were not administering tax claims fast enough for my constituents.

What is more concerning is that, under the current proposals, HMRC is tasked to deliver the Universal Credit, the amalgamation of most previous social security benefits, which will affect millions of people in the UK. Considering the current failings of the department, I feel this decision needs to be carefully scrutinised.

When people make benefit claims and urgently require their claim to be processed, the last thing they need is long waiting times or an automatic telephone response telling them the lines are busy. This report highlights the urgent need for a much better, customer-focussed service for all those that use it.'