Buying Solutions

House of Lords written question – answered at on 1 March 2010.

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Photo of Lord Oakeshott of Seagrove Bay Lord Oakeshott of Seagrove Bay Spokesperson for the Treasury, Spokesperson for Work and Pensions

To ask Her Majesty's Government how much was paid by HM Revenue and Customs and its agencies to (a) PricewaterhouseCoopers, (b) KPMG, (c) Deloitte, (d) Ernst & Young, (e) Grant Thornton, (f) BDO Stoy Hayward, (g) Baker Tilly, (h) Smith & Williamson, (i) Tenon Group, (j) PKF, (k) McKinsey and Company, and (l) Accenture, in each of the past five years for which information is available; how they monitor contracts with those firms; and how the department reports (1) during, and (2) at the end of contracts, to Buying Solutions.

Photo of Lord Myners Lord Myners Parliamentary Secretary, HM Treasury

HM Revenue and Customs (HMRC) spend information prior to 2006 is held on legacy HM Customs and Excise and Inland Revenue systems and is not available at the level of detail requested for the period 2005-06. Information is available at the level of detail requested for the periods 2006-07 onwards and is provided in the table below:

Service Provider HMRC-Spend per financial year (£)
2006/07 2007-08 2008-09 2009-10 to date
Accenture 2,337,256 478,997 0 30,920
Baker Tilly 4,000 15,394 0 72,681
BDO Stoy Hayward 23,275 21,799 18,069 4,967
Deloitte MCS Ltd 7,300,231 444,735 7,517,609 11,570,451
Ernst and Young 185,517 106,429 2,358,492 3,803,793
Grant Thornton UK LLP 28,146 13,101 21,537 25,908
KPMG LLP 1,198,652 2,422,338 5,462,555 5,653,448
McKinsey and Company 0 0 0 0
PKF 69,680 87,704 138,827 65,957
PricewaterhouseCoopers LLP 1,302,253 828,427 2,949,391 2,032,219
Tenon 0 0 0 0
Smith & Williamson 0 0 0 0

The increase in expenditure in 2008-09 and 2009-10 is to support delivery in departmental transformation programmes: government banking, modernising PAYE processes for customers (MPPC), pacesetter/lean, data security and compliance and enforcement.

The Valuation Office Agency (VOA) is able to provide detailed information from 1 April 2005 and this is provided in the table below.

Service provider VOA-Spend per financial year (£)
2005-06 2006-07 2007-08 2008-09 2009-10 to date
Accenture 0 0 0 0 0
Baker Tilly 0 0 0 0
BDO Stoy Hayward 0 0 0 0 0
Deloitte MCS Ltd 0 0 0 0 708,093
Ernst and Young 0 0 0 0 0
Grant Thornton UK LLP 0 0 0 0 0
KPMG LLP 1,362,188 29,823 0 0 0
McKinsey and Company 0 0 0 0 0
PKF 0 0 0 0 0
PricewaterhouseCoopers LLP 1,245 1,111 0 0 0
Tenon 0 0 0 0 0
Smith & Williamson 0 0 0

Contracts awarded are monitored by the business area (within HMRC or VOA) receiving the services. The service providers are monitored against the agreed contract, which may include assessment of:

delivery against the agreed key performance indicators;delivery of agreed outputs, within agreed timescales;payment, in accordance with the agreed proposal and fees structure; andskills transfer to staff (where appropriate).

HMRC and VOA may on occasion choose to use Buying Solution framework contracts but there is no reporting relationship to Buying Solutions since it acts as an agent to departments. HMRC and VOA hold regular business relationship meetings with Buying Solutions at director level but these do not involve individual contract spend discussion.

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