Mon, 31 Oct 2011

HMRC concedes leadership must improve within the organisation or morale will suffer

The government has responded to a report by MPs that criticises the leadership within HM Revenue & Customs (HMRC) by acknowledging action is required or productivity and engagement will suffer.

The report by the Treasury Select Committee, published earlier in the year, gave a damning forecast on the Revenue’s performance in light of failing management.

It said: “The evidence we have received about the management culture within HMRC, supported by the staff survey results, is very disturbing. There is a perception that the department is run on the principles of close control and management scrutiny, with little opportunity for individuals to develop autonomy and exercise their skills.

“Whilst there is a need for consistency in dealing with people’s tax affairs and appropriate performance management, a culture such as the one described to us is likely to harm staff morale and lead to disengagement and poor performance.”

Last week the government responded to the report conceding that: “HMRC is taking steps to build more productive relationships with its people as well as improve the leadership skills.”

It also went on to acknowledge further criticisms from the report, including that data quality remained a key weakness in the PAYE system, but denied that the target to introduce Real-time Information from April 2013 was overly ambitious.

See also:

• Mrs Dummy? HMRC puts onus on employers to clean up data ahead of RTI
• Troops fighting in Afghanistan will receive fines for late filing self-assessment
• Online filing of tax self-assessment up 10% on last year