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An influential group of MPs has expressed grave concerns about staff morale at the Revenue and the way in which the department engages its workers.
In a new report, the Treasury sub-committee is highly critical of a ‘very disturbing’ management culture that is run on the principle of close control, providing little opportunity for employees to exercise their skills.
The document, Administration and Effectiveness of HMRC, acknowledges the inevitably discouraging effects of the taxman’s four-year programme of job cuts, which is scheduled to end this year after reducing the workforce by around 12,500 individuals.
Revenue bosses face an enormous challenge in ensuring that staff engagement does not fall further as some parts of the department continue to be pared down, claim the MPs, who note that ‘relatively positive staff attitudes towards immediate colleagues and superiors stand in stark contrast with overwhelmingly negative attitudes towards organisational change and the management.
Of particular concern is that members of staff feel unable to escalate possible problems up the management chain or challenge established practice – and the hypothetical benefits of close scrutiny should be that issues are anticipated.
‘This does not appear to be the case, as the handling of the 2009-10 PAYE reconciliations shows,’ says the committee’s report. It also highlights the dissatisfaction held towards HMRC by taxpayers.
Causes for complaint include difficulties contacting the taxman by phone during peak periods, endemic delays in responding to post, and an increasing focus on online communication that may exclude those without reliable web access.
In response, the Treasury sub-committee has made several recommendations for improvement, such as alternatives to 0845 numbers, a robust alternative to online contact, cost-effective ways of providing face-to-face tax advice, and greater awareness of the impact of process changes on individuals and businesses.
The Chartered Institute of Taxation (CIOT) urged the Revenue to instigate the changes as soon as possible.
‘For the tax system to work effectively there must be trust between taxpayers and HMRC. Taxpayers and their agents must be able to navigate the tax system easily, pay their taxes and get answers… to their questions. The key is clarity,’ said the professional body’s president, Anthony Thomas, who earlier this year warned of the erosion of UK’s tax set-up.
‘HMRC must act urgently on [the Treasury’s] recommendations or risk undermining confidence in the tax system still further. The recommendations are in line with the aspirations of the HMRC charter, which was intended to embed a taxpayer perspective from the bottom to the top of the department.’
The Association of Revenue and Customs (ARC), the union for senior Revenue employees, welcomed the sub-committee’s report. President Graham Black said the recognition that cuts are having a serious impact on delivery is ‘one that we share’.
He added, ‘While the [report points] to low morale and suggests HMRC leaders need to change their approach, ARC is now in dispute with HMRC because of attempts by the department’s board members to worry and bully staff. This hardly suggests that HMRC is taking the committee seriously, which is a serious error of judgement.’
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