Asked by: Lord Agnew of Oulton (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, with regard to page 41 of their policy paper Spending Review 2025: Departmental Efficiency Plans, published on 11 June, what was the average cost per case in 2024–25 for (1) ministerial, and (2) public correspondence in the Treasury; and what is the projected average cost per case under the automated correspondence system.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Due to correspondence being just one role officials have, the potential for multiple officials to be involved, and differing complexity per case, we do not currently attribute precise staff time spent per case. Therefore, we are unable to provide an average cost per case for ministerial or public correspondence in 2024–25.
However, as set out in the Departmental Efficiency Plans, the adoption of AI-driven automation is expected to both speed up casework and reduce overall costs. We anticipate efficiency gains relative to current arrangements. Further detail will be available once the automated tools are fully developed and deployed and the impact assessed in terms of central resource and time savings.
Asked by: Lord Agnew of Oulton (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what proportion of interactions with His Majesty's Revenue and Customs customer service lines were classified as ‘failure demand’ resulting from (1) internal administrative errors, (2) unclear or misleading official guidance, or (3) another form of failure demand, in each of the past four financial years; and in each case, what was the total estimated cost.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
HMRC publishes its call waiting times here: https://www.gov.uk/government/collections/hmrc-monthly-performance-reports
Last year, HMRC received extra funding to deploy additional customer service advisers. They are also investing in new technology which will significantly enhance the customer experience. Improving day-to-day performance is a key priority for HMRC.
Failure demand encompasses a broad spectrum of issues, including customer, employer and HMRC errors. While HMRC classifies some categories of call as failure demand (for example the customer could theoretically find relevant information via online guidance), these calls are essential in helping customers understand their tax obligations and pay the right amount of tax. Therefore, while HMRC is seeking to reduce failure demand and encourage customers to use online services, they recognise the importance of continuing to support those who call for extra help.
The below table provides the total proportion of calls classified as ‘failure demand’. Failure demand data does not exist for 2021/22 (or earlier).
| 2022-23 | 2023-24 | 2024-25 |
Failure Demand Percentage | 70% | 72% | 76% |
Asked by: Lord Agnew of Oulton (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, based on average hourly earnings, what was the estimated total financial cost incurred by taxpayers because of call waiting times for His Majesty's Revenue and Customs customer helplines in each of the past four financial years.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
HMRC publishes its call waiting times here: https://www.gov.uk/government/collections/hmrc-monthly-performance-reports
Last year, HMRC received extra funding to deploy additional customer service advisers. They are also investing in new technology which will significantly enhance the customer experience. Improving day-to-day performance is a key priority for HMRC.
Failure demand encompasses a broad spectrum of issues, including customer, employer and HMRC errors. While HMRC classifies some categories of call as failure demand (for example the customer could theoretically find relevant information via online guidance), these calls are essential in helping customers understand their tax obligations and pay the right amount of tax. Therefore, while HMRC is seeking to reduce failure demand and encourage customers to use online services, they recognise the importance of continuing to support those who call for extra help.
The below table provides the total proportion of calls classified as ‘failure demand’. Failure demand data does not exist for 2021/22 (or earlier).
| 2022-23 | 2023-24 | 2024-25 |
Failure Demand Percentage | 70% | 72% | 76% |
Asked by: Lord Agnew of Oulton (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether they have contingency plans to ensure the continued operation of the Enterprise Tax Management Platform beyond the scheduled end of vendor support in 2027.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
HMRC has established the Enterprise Tax Management Platform Regeneration Programme, with the responsibility of safeguarding the future of HMRC’s Enterprise Tax Management Platform beyond the scheduled end of vendor support in 2027.
This work continues to be funded as a Government Major Project Portfolio programme, with a scheduled live implementation date of May 2029. Extended support will be available from 2027 to 2030 to support the transition to a new platform. HMRC has been preparing for the end of vendor support by ensuring a robust IT strategy and roadmap is in place.
Asked by: Lord Agnew of Oulton (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what were the (1) employer, and (2) employee, contribution rates for each public service pension scheme in each financial year since 1999–2000; and what is the estimated service cost of each of those schemes in the current financial year.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
There are 20 public service pension schemes in the UK for NHS workers, teachers, the armed forces, the police, firefighters, the judiciary, local government workers and civil servants. Published actuarial valuations are completed every 4 years (or every 3 years in the case of the Local Government Pension Schemes in England and Wales, Northern Ireland and Scotland) and set the employer contribution rates.
Across those schemes there will be thousands of different employer contribution rates specified during the period 1999/2000 to 2025/2026 and the Government does not hold a summary of all of the information requested. Employee contribution rates for each of the schemes are set out in scheme regulations laid before Parliament.
There are also public service pension schemes for Westminster MPs and ministers, and equivalent schemes for Scotland, Wales and Northern Ireland, which are also required to publish their employer contribution rates. The service costs of the schemes are set out in their annual accounts.
Asked by: Lord Agnew of Oulton (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what is the total value of Research and Development tax relief identified as fraudulent and subsequently reclaimed by His Majesty's Revenue and Customs in each of the past five financial years; and what proportion of that amount has been successfully recovered.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Estimates of the level of error and fraud in Research and Development (R&D) tax relief and information regarding additional tax revenue generated by HMRC’s compliance activity are published in HMRC’s Annual Report and Accounts. The latest publication can be found on Gov.UK and the next publication is due in July.
The methodology used to calculate the level of error and fraud for 2020-2021 was significantly improved for the 2022-2023 Annual Reports and Accounts. Estimates of the level of error and fraud in R&D tax relief for earlier years are not available on a comparable basis.
Analysis shows that around half of all claims, by volume, contained some element of non-compliance with fraud indicators found in fewer than 10 per cent of claims and accounting for less than 5 per cent of the total value claimed.
HMRC’s Approach to Research and Development tax relief 2023 to 2024 details the overall amount of tax recovered through HMRC’s compliance activity for the past two financial years, this information is also set out in the table below.
| 2022-23 | 2023-24 |
Proportion of compliance checks resulting in an adjustment being required | 71% | 77% |
Tax recovered from compliance checks | £288 million | £441 million |
HMRC seeks to recover R&D tax relief where it was not claimed in accordance with the law and in line with statutory time limits. In the majority of cases, adjustments for incorrect R&D claims will be limited to claims investigated within the normal time limit of 12 months from the date the claim is submitted. HMRC also considers raising assessments outside of this normal time limit where relevant legislative conditions are met, including where there is evidence of deliberate non-compliance.
Asked by: Lord Agnew of Oulton (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government how many Research and Development tax advisers His Majesty's Revenue and Customs (HMRC) has referred to a professional regulatory or disciplinary body in each of the past five years; and under what statutory authority HMRC is empowered to refer or sanction such advisers.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
HMRC can disclose the misconduct of a tax advisor to any professional regulatory body they are a member of, under section 20(3) of the Commissioners of Revenue and Customs Act 2005.
The table below provides the total number of disclosures made to professional regulatory bodies between 2019-2020 and 2023-2024. The table refers to the total number of referrals and HMRC does not publish relief specific breakdowns of disclosures it makes to professional regulatory bodies.
Year | Number of disclosures |
2019-2020 | 25 |
2020-2021 | 13 |
2021-2022 | 14 |
2022-2023 | 31 |
2023-2024 | 45 |
The government has recently consulted on options to enhance HMRC’s powers to tackle poor tax adviser behaviour, which includes Research & Development agents. This consultation closed on 7 May 2025. It is the government’s intention that any legislative changes following the consultation will be included in the 2025 Finance Bill.
Asked by: Lord Agnew of Oulton (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what estimate they have made of the proportion of Research and Development tax relief claims submitted in each of the past five financial years that involved the use of nominee or third-party bank accounts to receive payment.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
HMRC does not publish the proportion of Research and Development (R&D) claims involving nominee or third-party bank accounts for the past five financial years.
Since November 2023, no new assignments of R&D tax credits have been possible and since April 2024, claimants have not been able to nominate a third-party payee. The changes were made as analysis showed that more than 90% of R&D claims that were fraudulent or displayed some markers of fraud used nominee bank accounts. These changes reduce the incentive for agents to submit spurious claims, as customers will receive the payment direct. They provide customers with more visibility over claims made on their behalf and allow them to correct any inaccuracies.
Asked by: Lord Agnew of Oulton (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the potential impact of requiring independent attestation by a qualified competent professional for all Research and Development tax relief claims above a specified threshold; and what consideration they have given to introducing a requirement such as a condition of eligibility.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government recognises the importance of research and development (R&D) in driving innovation, and the benefits it can bring for society. By incentivising R&D, tax reliefs can play a vital role in the Government’s mission to boost economic growth.
R&D tax reliefs are delivered as part of the Corporation Tax self-assessment process. This requires claimant companies to assess their own entitlement. HMRC has produced specific guidance to assist claimants to make that assessment. This includes discussion on the importance of being able to substantiate the advance in science and technology sought, and how that can be aided by the involvement of a qualified competent professional.
The Government is committed to responding to stakeholder feedback and enhancing the administration of R&D tax reliefs. To support this, HMRC published a consultation on 26 March to explore widening the use of advance clearances in the reliefs to help further reduce error and fraud, while also improving the customer experience and providing certainty to businesses.
The Corporate Tax Roadmap confirmed HMRC will establish an R&D expert advisory panel and HMRC launched recruitment for the panel on 6 May. The panel will work with HMRC to improve the functioning of the R&D tax reliefs system by increasing clarity of guidance for claimants and enhancing HMRC’s understanding of innovation and developments across key growth sectors which will assist in its assessment of R&D claims.
The Government will continue to consider longer term simplifications and incremental improvements to the effectiveness of the reliefs.
Asked by: Lord Agnew of Oulton (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what was (1) the total whole-life cost, and (2) number of projects, in the Government Major Projects Portfolio in each of the past seven financial years; and what was the headcount of the Infrastructure and Projects Authority in each of those years.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
As published in the Infrastructure and Project Authority’s most recent Annual Report for 2023 to 2024, the whole-life cost followed by the number of projects on the Government Major Projects Portfolio for each of the last seven financial years is as follows:
This information is presented within the Infrastructure and Project Authority’s most recent Annual Report for 2023 to 2024.
The headcount for the Infrastructure and Projects Authority for each of the last seven years (the number of the Full-Time Equivalent staff from the 1st April each year) is as follows: