The UK government decided to introduce cap on headcount at its current level will be introduced with immediate effect, saying the decision will help cut the cost of government and could save up to £1 billion by March 2025 compared to the current trajectory.

This cap comes after the Civil Service workforce experienced consistent growth since 2016, surging to approximately 488,000 members by June 2023

Chris Campbell

Expressing his reservations, Chris Campbell, ICAS head of tax (tax practice and OMB taxes), said: “Current HMRC service levels are poor, and in yesterday’s speech, the chancellor gave no reassurance that this would change, in fact, his plans are likely to exacerbate problems.

“Our members are increasingly telling us that they face severe delays and frustration when dealing with HMRC. Poor HMRC service levels are having a significant impact on taxpayers and businesses.

“In the absence of improved digital services, any reduction in HMRC staffing levels would result in a further reduction to the service our members and the public are receiving. The recent reduction in the service levels on the agent dedicated line is an example where HMRC has cut back its services in view of reduced resources and today’s announcement has the potential to result in other cutbacks impacting the efficient operation of the tax system.”