Corporate report

Accounting Officer Assessment Summary: HMRC Trader Support Service Programme further contract extension

Published 27 November 2023

It is normal practice for Accounting Officers to scrutinise significant policy proposals or plans to start or vary major projects and assess whether they measure up to the standards set out in HM Treasury’s Managing Public Money guidelines.

From April 2017, the government has committed to make a summary of the key points from these assessments available to Parliament when an Accounting Officer has agreed an assessment of a project within the Government Major Projects Portfolio. The first assessment for this programme was published on 29 January 2021. An updated summary was published on 3 October 2022 to reflect a one-year contract extension to December 2023. This updated summary has been completed in the light of a further one-year contract extension for the service to December 2024.

Background and context

The Trader Support Service (TSS) was originally designed to provide extensive support to Northern Ireland traders to help them to meet their obligations under the Northern Ireland Protocol.

On 27 February 2023, the UK and EU agreed the Windsor Framework, providing a fundamentally new set of arrangements to restore the smooth flow of trade within the UK internal market, safeguard Northern Ireland’s place in the UK and address the democratic deficit that was at the heart of the original Northern Ireland Protocol. These arrangements were adopted at the Withdrawal Agreement Joint Committee on 24 March 2023.

The TSS was initially procured until 31 December 2022 and a first extension (until 31 December 2023) was agreed last year. Since that point, HMRC has assessed the medium and long-term options for the TSS and considers that another one-year extension, until 31 December 2024, is required.

As a core part of the Windsor Framework arrangements, the UK government has committed to continue to provide support for those moving goods between Great Britain and Northern Ireland.

Regularity

The programme was mandated by the government’s commitment to implement the Withdrawal Agreement Bill and the Northern Ireland Protocol (now replaced by the Windsor Framework). The programme does not require any additional legislation and continues to comply with Parliamentary requirements for the control of expenditure.

The TSS was designed to address the key readiness challenges for the implementation of the Northern Ireland Protocol.

With the replacement of the Northern Ireland Protocol by the Windsor Framework, the TSS will maintain support for traders moving goods under existing arrangements and support delivery of the changes required under the Windsor Framework, the main customs elements of which will take place from September 2024.

Propriety

The TSS Programme complies with Parliamentary requirements for the control of expenditure, with funds being applied only to the extent and for the purposes authorised by Parliament.

Clear governance processes have been established for effective programme management. The programme has established a Project Board and Steering Group as the key decision-making boards, attended by key stakeholders. An updated business case was recently re-approved by HMRC’s Change Investment Design Committee in August 2023 and is subject to HM Treasury (HMT) approval procedures.

As part of the Government Major Projects Portfolio (GMPP), the programme reports quarterly to the Infrastructure and Projects Authority (IPA) on progress. An assessment of the programme’s progress is published as part of the IPA’s Annual Report on Major Projects 2022 to 2023. The TSS Programme was reviewed as part of an IPA gateway assessment in August 2022 and more recently in August 2023.

Value for money

The programme has followed HMT’s Green Book methodology and five-case model. Value for money has been assessed via an options appraisal which has been documented in the Programme Business Case. The preferred option offers the highest potential to achieve the programme’s objectives and minimise delivery risks. Without this service there would be a significant additional regulatory burden on trade between Great Britain and Northern Ireland which could deter such trade.

To deliver value for money, HMRC has negotiated new contract terms with increased flexibility which will allow the service to manage Windsor Framework delivery through adjusting capacity and cost as required. There is also the flexibility to terminate the service during the contract term.

Feasibility

The programme leadership, supported by delivery partners, have the skills and experience needed to achieve the programme deliverables within the required timeframe. The programme regularly monitors capacity and resource requirements, progress against delivery plans, risks and dependencies, with action being taken when it is appropriate to do so.

The programme was assessed in an IPA gateway review in August 2022, which provided an independent and positive view regarding feasibility of the first contract extension. A further gateway review was conducted in August 2023 to assess the contract extension to December 2024 and future arrangements for TSS.

Conclusion

As the Accounting Officer for HMRC I have considered my assessment of the TSS Programme and concluded that the proposal is value for money and deliverable. I have therefore approved it as of 6 September 2023. I have prepared this summary to set out the key points which informed my decision.

If any of these factors change materially during the lifetime of the programme, I undertake to prepare a revised summary, setting out my updated assessment. This summary will be published on the government website (GOV.UK). Copies will be deposited in the Library of the House of Commons and sent to the Comptroller and Auditor General and Treasury Officer of Accounts.

Accounting Officer’s name: Jim Harra, Chief Executive HM Revenue and Customs.

Signature:

Date of signing: 6 September 2023