Asked by: Kim Johnson (Labour - Liverpool Riverside)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the projected cost of the Managed Service Provider model is, including contract management and oversight costs; and whether that cost has been benchmarked against (a) recruiting and training permanent HMRC staff and (b) the use of temporary and surge staffing.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Customer demand for HMRC services can fluctuate significantly, both seasonally and in response to external events. HMRC uses Managed Service Providers (MSPs) to provide additional, flexible capacity to help manage these types of variations and support performance on customer helplines. Incorporating MSPs into the overall resourcing mix helps HMRC maintain customer service standards, while retaining expertise within its workforce.
Other Government Departments (OGDs) already use MSP contracts to provide additional workforce flexibility. HMRC are currently in an initial approximately 18 month ‘proof of value’ phase using existing Government contracts. This will allow them to test, learn and ensure quality and value for money before wider implementation.
Due to the design of the contract, HMRC can only confirm costs retrospectively. Much of the oversight work utilises existing HMRC staff who do that work for their internal services, thereby ensuring continuity across the services. Overall the projected cost for 12 months was approximately £23m.
HMRC are conducting a joint evaluation, at quarterly intervals, of the performance of the MSP including its value for money with the Trade Unions which will include customer satisfaction, quality, productivity and other metrics.
HMRC provides the initial training for the services covered by the MSPs, before approving suppliers to train subsequent cohorts of staff themselves. All operational guidance is developed, owned and updated by HMRC, and HMRC retains full decision‑making authority, with a dedicated team actively managing the partnership.
Asked by: Kim Johnson (Labour - Liverpool Riverside)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, who is responsible for training Managed Service Provider staff and trainers; and what role HMRC staff play in that process.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Customer demand for HMRC services can fluctuate significantly, both seasonally and in response to external events. HMRC uses Managed Service Providers (MSPs) to provide additional, flexible capacity to help manage these types of variations and support performance on customer helplines. Incorporating MSPs into the overall resourcing mix helps HMRC maintain customer service standards, while retaining expertise within its workforce.
Other Government Departments (OGDs) already use MSP contracts to provide additional workforce flexibility. HMRC are currently in an initial approximately 18 month ‘proof of value’ phase using existing Government contracts. This will allow them to test, learn and ensure quality and value for money before wider implementation.
Due to the design of the contract, HMRC can only confirm costs retrospectively. Much of the oversight work utilises existing HMRC staff who do that work for their internal services, thereby ensuring continuity across the services. Overall the projected cost for 12 months was approximately £23m.
HMRC are conducting a joint evaluation, at quarterly intervals, of the performance of the MSP including its value for money with the Trade Unions which will include customer satisfaction, quality, productivity and other metrics.
HMRC provides the initial training for the services covered by the MSPs, before approving suppliers to train subsequent cohorts of staff themselves. All operational guidance is developed, owned and updated by HMRC, and HMRC retains full decision‑making authority, with a dedicated team actively managing the partnership.
Asked by: Kim Johnson (Labour - Liverpool Riverside)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how HMRC will demonstrate value for money on the long term rollout of the Managed Service provider model.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Customer demand for HMRC services can fluctuate significantly, both seasonally and in response to external events. HMRC uses Managed Service Providers (MSPs) to provide additional, flexible capacity to help manage these types of variations and support performance on customer helplines. Incorporating MSPs into the overall resourcing mix helps HMRC maintain customer service standards, while retaining expertise within its workforce.
Other Government Departments (OGDs) already use MSP contracts to provide additional workforce flexibility. HMRC are currently in an initial approximately 18 month ‘proof of value’ phase using existing Government contracts. This will allow them to test, learn and ensure quality and value for money before wider implementation.
Due to the design of the contract, HMRC can only confirm costs retrospectively. Much of the oversight work utilises existing HMRC staff who do that work for their internal services, thereby ensuring continuity across the services. Overall the projected cost for 12 months was approximately £23m.
HMRC are conducting a joint evaluation, at quarterly intervals, of the performance of the MSP including its value for money with the Trade Unions which will include customer satisfaction, quality, productivity and other metrics.
HMRC provides the initial training for the services covered by the MSPs, before approving suppliers to train subsequent cohorts of staff themselves. All operational guidance is developed, owned and updated by HMRC, and HMRC retains full decision‑making authority, with a dedicated team actively managing the partnership.
Asked by: Mary Glindon (Labour - Newcastle upon Tyne East and Wallsend)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what proportion of frontline customer contact work HMRC expects to be delivered by Managed Staff Provider staff versus directly employed civil servants over (a) the next 12 months and (b) the duration of the Comprehensive Spending Review, and if she will make a statement.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Customer demand for HMRC services can fluctuate significantly, both seasonally and in response to external events. HMRC uses Managed Service Providers (MSPs) to provide additional, flexible capacity to help manage these types of variations and support performance on customer helplines. Incorporating MSPs into the overall resourcing mix helps HMRC maintain customer service standards, while retaining expertise within its workforce.
The current staff provided by MSPs represent additional capacity for 2025/26. The proportion of frontline customer contact work delivered by MSP staff is small compared to the proportion of work handled by HMRC staff. No HMRC staff will be made redundant as a result of this initiative. HMRC headcount is forecast to increase by the end of the Spending Review 2025 period.
HMRC are not privatising their services and there are no plans to outsource customer contact services beyond this limited contract for additional capacity in 2025/26. HMRC intends the expertise behind customer support to remain within HMRC.
HMRC will continue to use a range of resourcing models, including Surge, alongside the use of MSPs, to meet variable customer demand. With a complex mix of transformation, resourcing models and impacts from external events it is difficult to attribute work to single things or make statements about permanent approaches. Future workforce decisions will be taken through normal business planning and Spending Review processes.
HMRC are currently in an initial approximately 18 month ‘proof of value’ phase using existing Government contracts. Whilst HMRC sees MSPs as part of its resourcing mix going forward, a joint HMRC and PCS evaluation will take place to inform future use, beyond the next 12 months.
Asked by: Lord Freyberg (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the net fiscal effect of the 2026 non-domestic rating revaluation on the commercial recording studio sector; whether any projected increase in non-domestic rates yield has been set against the risk of lost income tax, National Insurance contributions, corporation tax, and VAT receipts arising from commercial recording studio closures and the relocation of recording activity overseas; and whether they intend to monitor those fiscal effects over a five-year period.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
No such estimates have been made. In recognition of the impact of the revaluation on bills, the Government has introduced a support package worth £4.3 billion to protect ratepayers against large overnight increases in bills.
Recording studios are a vital part of the infrastructure of the music industry. The Government is doubling funding for the Music Growth Package, which will support the music ecosystem across both live and electronic music – from grassroots venues, festivals, recording and rehearsal studios to artists, songwriters, independent labels, managers, and promoters working in all genres of music.
The Government will continue to engage closely with the sector to understand ongoing pressures and ensure the UK remains a globally competitive place to create, record and produce music.
Asked by: Samantha Niblett (Labour - South Derbyshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to assist people with student debt to gain access to a mortgage.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government is committed to making home ownership more accessible by supporting first-time buyers, and welcomes changes made last year to support homeowners. The FCA clarifications to their affordability testing rules have been adopted by 85% of the market and should allow customers to borrow around 10% more on the same income.
Additional flexibility from the Bank of England in relation to their loan-to-income rules are also allowing more customers to access larger mortgages in relation to their incomes. The Bank of England estimates that this change provide capacity for lenders to support up to 36,000 additional first-time buyers in the first year.
The UK also benefits from a competitive mortgage market that offers various low deposit products; prospective buyers are encouraged to shop around and speak to a mortgage broker to find the best possible product for their circumstances.
As a Government, we recognise the impact that previous Government terms can have on graduates’ finances. The government is capping the maximum interest rates on Plan 2 and 3 student loans at 6% from 1 September, for the 2026/27 academic year, delivering stability and protections for graduates from escalating student loan interest. We will continue to keep the terms of the student loan system under review to ensure that it is sustainable and fair for both students and taxpayers.
Asked by: Lord Pack (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Written Answer by Baroness Anderson of Stoke-on-Trent on 24 March (HL15443), what steps HM Treasury has taken in the last year to meet its legal duty to keep under review the question of when uncommenced legislation that falls within its area of responsibility should be brought into force.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Treasury keeps legislation under review considering operational readiness, Cabinet Office guidance and wider priorities. Policy teams monitor provisions that have not been commenced and consider when to bring forward commencement orders, drawing on legal and legislative advice where needed. The department remains in regular contact with Parliament to undertake required post-legislative scrutiny, including consideration of measures not yet commenced.
Asked by: Lord Freyberg (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask His Majesty's Government what estimate they have made of the loss to public finances of income tax and National Insurance contributions arising from the potential closure of commercial recording studios as a result of the 2026 non-domestic rating revaluation; and what assessment they have made of the number of entry-level positions in commercial recording studios that may be lost as a consequence.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
No such estimates have been made. In recognition of the impact of the revaluation on bills, the Government has introduced a support package worth £4.3 billion to protect ratepayers against large overnight increases in bills.
Recording studios are a vital part of the infrastructure of the music industry. The Government is doubling funding for the Music Growth Package, which will support the music ecosystem across both live and electronic music – from grassroots venues, festivals, recording and rehearsal studios to artists, songwriters, independent labels, managers, and promoters working in all genres of music.
The Government will continue to engage closely with the sector to understand ongoing pressures and ensure the UK remains a globally competitive place to create, record and produce music.
Asked by: Lord Alton of Liverpool (Crossbench - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what steps they have taken to permanently prevent ISIS from using their financial assets which have already been frozen.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
There are 255 individuals and 88 entities or groups designated under the ISIL (Da’esh) and Al-Qaida (United Nations Sanctions) (EU Exit) Regulations 2019. The UK funds and economic resources owned, held or controlled by persons listed under this regime are frozen.
UK persons are also prohibited from dealing with the assets of Designated Persons, either directly or indirectly. The Office of Financial Sanctions Implementation will continue to investigate any breaches of financial sanctions.
UK sanctions legislation does not provide powers to seize frozen assets. Assets owned or controlled by a designated person are frozen immediately by the person in possession or control of them and does not involve a change in ownership.
Asked by: Mary Glindon (Labour - Newcastle upon Tyne East and Wallsend)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether HMRC intends for the Managed Service Provider to remain limited to peak demand cover or to become a permanent component of Customer Services Group resourcing, and if she will make a statement.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Customer demand for HMRC services can fluctuate significantly, both seasonally and in response to external events. HMRC uses Managed Service Providers (MSPs) to provide additional, flexible capacity to help manage these types of variations and support performance on customer helplines. Incorporating MSPs into the overall resourcing mix helps HMRC maintain customer service standards, while retaining expertise within its workforce.
The current staff provided by MSPs represent additional capacity for 2025/26. The proportion of frontline customer contact work delivered by MSP staff is small compared to the proportion of work handled by HMRC staff. No HMRC staff will be made redundant as a result of this initiative. HMRC headcount is forecast to increase by the end of the Spending Review 2025 period.
HMRC are not privatising their services and there are no plans to outsource customer contact services beyond this limited contract for additional capacity in 2025/26. HMRC intends the expertise behind customer support to remain within HMRC.
HMRC will continue to use a range of resourcing models, including Surge, alongside the use of MSPs, to meet variable customer demand. With a complex mix of transformation, resourcing models and impacts from external events it is difficult to attribute work to single things or make statements about permanent approaches. Future workforce decisions will be taken through normal business planning and Spending Review processes.
HMRC are currently in an initial approximately 18 month ‘proof of value’ phase using existing Government contracts. Whilst HMRC sees MSPs as part of its resourcing mix going forward, a joint HMRC and PCS evaluation will take place to inform future use, beyond the next 12 months.