Asked by: Andy McDonald (Labour - Middlesbrough and Thornaby East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many Full‑Time Equivalent staff are engaged via the Managed Service Provider, broken down by business area.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC is currently using Managed Service Providers (MSPs) to provide additional customer service capacity, equivalent to around 500 FTE, focused on routine work. This includes support for the Online Services Helpdesk and handling simple PAYE enquiries.
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.
HMRC has been clear that no HMRC colleague will be made redundant as a result of this initiative.
HMRC will continue to use a range of resourcing models, alongside the use of MSPs, to meet variable customer demand.
Asked by: Andy McDonald (Labour - Middlesbrough and Thornaby East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what modelling HMRC has undertaken on the displacement risk from the Managed Service provider model to existing HMRC roles, including surge staff and fixed‑term employees.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC is currently using Managed Service Providers (MSPs) to provide additional customer service capacity, equivalent to around 500 FTE, focused on routine work. This includes support for the Online Services Helpdesk and handling simple PAYE enquiries.
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.
HMRC has been clear that no HMRC colleague will be made redundant as a result of this initiative.
HMRC will continue to use a range of resourcing models, alongside the use of MSPs, to meet variable customer demand.
Asked by: Andy McDonald (Labour - Middlesbrough and Thornaby East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether Managed Service Provider staffing levels are expected to increase beyond peak‑demand coverage for each function.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC is currently using Managed Service Providers (MSPs) to provide additional customer service capacity, equivalent to around 500 FTE, focused on routine work. This includes support for the Online Services Helpdesk and handling simple PAYE enquiries.
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.
HMRC has been clear that no HMRC colleague will be made redundant as a result of this initiative.
HMRC will continue to use a range of resourcing models, alongside the use of MSPs, to meet variable customer demand.
Asked by: Andy McDonald (Labour - Middlesbrough and Thornaby East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what HMRC’s projected Managed Service Provider headcount is for the (a) next 12 months and (b) Spending Review period.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC is currently using Managed Service Providers (MSPs) to provide additional customer service capacity, equivalent to around 500 FTE, focused on routine work. This includes support for the Online Services Helpdesk and handling simple PAYE enquiries.
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.
HMRC has been clear that no HMRC colleague will be made redundant as a result of this initiative.
HMRC will continue to use a range of resourcing models, alongside the use of MSPs, to meet variable customer demand.
Asked by: Andy McDonald (Labour - Middlesbrough and Thornaby East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether HMRC plans to maintain Customer Services Group headcount and total productive hours as Managed Service Provider capacity increases.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC is currently using Managed Service Providers (MSPs) to provide additional customer service capacity, equivalent to around 500 FTE, focused on routine work. This includes support for the Online Services Helpdesk and handling simple PAYE enquiries.
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.
HMRC has been clear that no HMRC colleague will be made redundant as a result of this initiative.
HMRC will continue to use a range of resourcing models, alongside the use of MSPs, to meet variable customer demand.
Asked by: Andy McDonald (Labour - Middlesbrough and Thornaby East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what proportion of goods from the illegal settlements in the Occupied Palestinian Territories are passed-off as coming from Israel.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The UK Government has a clear position that Israeli settlements in Palestine are illegal under international law. Goods produced in these settlements are not entitled to benefit from preferential tariff treatment under the UK’s current trade agreements with the Palestinian Authority and Government of Israel.
Where there are doubts about the origin of goods that have been declared as being of Israeli origin, HMRC will undertake checks to verify the origin of those goods to ensure fiscal compliance. HMRC does not however provide specific details regarding checks as it may serve to undermine compliance activity.
Asked by: Andy McDonald (Labour - Middlesbrough and Thornaby East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what checks are made on the postal codes of goods to identify whether the origin of such goods are from (a) the illegal settlements in the Occupied Palestinian Territories and (b) Israel.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
It is a long-standing requirement that Israeli preference cannot be claimed on goods if the production conferring originating status has taken place in a location within the territories brought under Israeli administration since June 1967. The Department of Business & Trade has recently updated the list of non-eligible postcodes to reflect the latest position on Israeli Settlements.
HMRC takes a risk-based and intelligence-led approach to customs enforcement. Compliance measures evolve as the picture of risk changes ensuring any interventions are proportionate to the risk. HMRC has confirmed that regular checks are carried out on imports from Israel, and they are subject to verification to check their originating status.
HMRC introduced a new document code on 1 September 2025 to strengthen compliance with existing processes by asking the declarant to confirm imported goods met the conditions to claim preference under the UK-Israel Trade and Partnership Agreement, including alignment with the updated list of non-eligible postcodes.
These actions form part of the ongoing policy advice and review of processes aimed at ensuring the UK’s origin verification procedures remain robust and responsive to developments on the ground; ensuring any interventions are proportionate to the risk. The government remains committed to upholding the integrity of its trade policy and ensuring that goods receiving preferential treatment under trade agreements fully comply with legal and procedural requirements.
Asked by: Andy McDonald (Labour - Middlesbrough and Thornaby East)
Question to the HM Treasury:
To ask the Chancellor for the Exchequer, whether guidance is given to the food sector on potential criminal culpability in the importation of (a) goods and (b) services from the illegal settlements in the Occupied Palestinian Territories.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The UK Government has a clear position that Israeli settlements in Palestine are illegal under international law, and that goods produced in these settlements are not entitled to benefit from preferential tariff treatment under the UK’s current trade agreements with the Palestinian Authority and Israel.
Asked by: Andy McDonald (Labour - Middlesbrough and Thornaby East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of introducing regularised direct negotiations with workforce trades unions on (a) recruitment and (b) retention.
Answered by Darren Jones - Minister for Intergovernmental Relations
Pay for most public sector workforces is set based upon recommendations produced by respective independent Pay Review Bodies (PRBs). The PRBs consider a range of evidence when forming their recommendations, including the need to recruit, retain and motivate suitably able and qualified people; the financial circumstances of Government; the Government's policies for improving public services; and the Government's inflation target.
The last government neglected public sector pay for 14 years, leaving public services unable to recruit and keep the staff they need. That is why going forward, we want to make sure our public services can attract and keep the talent they need, as to ensure that those services provide a firm foundation for economic growth.
As part of achieving this, every 2025/26 pay award announced by the Government to date is above forecast inflation over the 2025/26 pay year, delivering another real-terms pay rise on top of the one the Government provided for 2024/25.
Furthermore, this Government remains committed to the independent Pay Review Body process as the established mechanism for determining pay uplifts for most public sector workers. It has operated for over four decades, provides independent advice and is a neutral process in which all parties play a role; which the unions campaigned to establish in the first place.
However, we recognise that faith in the Pay Review Body process had fallen in recent years, and so we are committed to bringing pay awards earlier in the pay year. That is why this Government announced pay awards for many workforces over two months earlier than last year. Additionally, we will be remitting PRBs for the next pay round shortly to put an end to pay awards being delivered late, ensuring that our valued public sector workers receive pay awards closer to the start of the pay year.
Asked by: Andy McDonald (Labour - Middlesbrough and Thornaby East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 19 December 2024 to Question 19626 on Public Sector: Collective Bargaining, what steps plans to take to help increase confidence in the public sector pay review body process.
Answered by Darren Jones - Minister for Intergovernmental Relations
Pay for most public sector workforces is set based upon recommendations produced by respective independent Pay Review Bodies (PRBs). The PRBs consider a range of evidence when forming their recommendations, including the need to recruit, retain and motivate suitably able and qualified people; the financial circumstances of Government; the Government's policies for improving public services; and the Government's inflation target.
The last government neglected public sector pay for 14 years, leaving public services unable to recruit and keep the staff they need. That is why going forward, we want to make sure our public services can attract and keep the talent they need, as to ensure that those services provide a firm foundation for economic growth.
As part of achieving this, every 2025/26 pay award announced by the Government to date is above forecast inflation over the 2025/26 pay year, delivering another real-terms pay rise on top of the one the Government provided for 2024/25.
Furthermore, this Government remains committed to the independent Pay Review Body process as the established mechanism for determining pay uplifts for most public sector workers. It has operated for over four decades, provides independent advice and is a neutral process in which all parties play a role; which the unions campaigned to establish in the first place.
However, we recognise that faith in the Pay Review Body process had fallen in recent years, and so we are committed to bringing pay awards earlier in the pay year. That is why this Government announced pay awards for many workforces over two months earlier than last year. Additionally, we will be remitting PRBs for the next pay round shortly to put an end to pay awards being delivered late, ensuring that our valued public sector workers receive pay awards closer to the start of the pay year.