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Chancellor's departments failing to fully address key issues

07/03/2008

A report out today has claimed that some of the Chancellor of the Exchequer's departments are failing to address key issues.

The report by the House of Commons Treasury Committee has reviewed the Value for Money Agreements, intended to give detail about individual departmental efficiency programmes, over the Treasury as a whole.

And has claimed that the departments are "failing to lead by example".

"The Chancellor's department's, which are the engine of the government spending, should be able to demonstrate clear progress against their targets. Sadly in some areas, such at the Value for Money Delivery Agreements, we have found them failing to lead by example," committee chairman and Conservative MP, Michael Fallon said.

"If they can't get this right, how can any other departments be expected to?"

Today's report said that the Treasury's Delivery Agreements was failing to address the key issues of disclosure, measuring quality of service and the need for external challenge.

It also said that HM Revenue & Customs (HMRC) was failing to hit targets for processing VAT receipts and improving the administration of tax credits.

"HMRC appears to be rewarding failure. Complaints about the tax credit system are at the highest level for five years, there has been a considerable deterioration in the VAT service and yet senior staff have received on average a 60 percent increase in their bonus payments. These payments appear completely unjustified," Mr Fallon said.