MPs on the influential Treasury Committee have told HM Revenue & Customs in a hard-hitting report that it is too reliant on slashing staff numbers in order to hit efficiency targets.

In the 84-page document, MPs said they were not convinced by HMRC's strategy of cutting costs by slashing jobs, as this could compromise service. MPs also said they were not satisfied with the way HMRC reported its progress against efficiency targets.

'We note the centrality of the headcount reductions to all areas of contention, particularly the reliance on headcount reductions to achieve the majority of HMRC’s monetary efficiency savings, and the consequential concerns about quality of service,' the MPs said in the document. 'We question the various methods used for reporting progress against the efficiency targets and recommend a greater level of clarity in HMRC’s reporting.'

Government efficiency targets could see HMRC cut as many as 25,000 jobs, a move that has left some staff demoralised and concerned taxpayers who fear that staff cuts could hurt service quality.

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