GOVERNMENT yesterday banked on HM Revenue & Customs delivering an extra £1bn to the nation’s coffers despite a £166m cut to its budget.
The revenue has been tasked with increasing the amount it pulls in from stopping tax evasion to £24.5bn in 2015-16 up from £23.5bn in 2014-15. However, the revenue’s capital budget has been cut by 1.9 per cent and its administrative budget by five per cent in real terms so that its total budget in 2015 is a lower £3.3bn. An HMRC spokesman said the revenue would do “more for less”.
“We have to take our share of efficiencies but, recognising the vital and critical role of HMRC in bring in the money ministers have agreed that HMRC’s reduction is lower than most other departments,” he said.
The government said yesterday that HMRC would focus on tax credit debt collection and collect an additional £95m of debts.
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