Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will give assurance that Managed Service Provider expansion will not result in a reduction in permanent civil service posts over the medium term, and if she will make a statement.

The current staff provided by Managed Service Providers (MSPs) represent additional capacity in 2025/26. HMRC staff will not be made redundant as a result of this initiative.

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.

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.

Callers are not informed whether the person they are speaking to is employed by HMRC or an MSP, as the service which they receive is the same. OGDs also take this approach.