Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether HMRC anticipates a reduction in the use or recruitment of Surge staff as MSP staffing increases.

This question was answered on 13th April 2026
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.