[HIB]HMRC freezes IT spending

HM Revenue & Customs is not allowing any cash to be spent on “routine improvements” to its IT systems, according to a report by the National Audit Office.The lack of technology funding for the entire financial year, as part of a clampdown on general spending, could cause serious problems in achieving efficiency targets set by Spending Reviews and coping with future growth in data, the NAO said in a report focusing on National Insurance processing. The only funding available was aimed at supporting legislative changes.As HMRC reduced its Natinoal Insurance staff numbers by between 16 and 31 percent in each main operating unit, it was dependent on better IT and processes to operate successfully. But the lack of funding available is in part “constraining" crucial operational changes, the NAO noted.

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