Corporate report

Accounting Officer Assessment Summary: Borders and Trade (B&T) – Release 2 (R2) Programme

Published 15 December 2021

It is normal practice for Accounting Officers to scrutinise significant policy proposals or plans of major projects, and then assess whether they measure up to the standards set out in Managing Public Money. 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 projects within the Government’s Major Projects Portfolio (GMPP).

Background and context

HMRC has a vital part to play in supporting the UK’s economy after UK Transition by implementing changes to customs and other border compliance processes. HMRC is central in delivery of the government’s 2025 UK Border Strategy and the ambition that the government has set out to have the most effective border in the world.

HMRC continues to work with other government departments to ensure that our work influences, aligns with and supports the government’s objectives at the border.

Borders and Trade Release 2 Programme (R2) will implement several key changes to ensure fully functioning UK customs border processes are operated post-transition.

Delivery is measured against the 4 R2 Programme objectives:

1. ending of staged customs controls: full customs controls for EU to GB import movements are due to be introduced on 1 January 2022. Safety and security declarations for imports from the EU will be required from 1 July 2022
2. making the Northern Ireland Protocol work: on 21 July 2021, the government published proposals for changes to the protocol that are required to make it operable and sustainable, and the UK is now in talks with the EU on those proposals. HMRC is committed to having systems in place to deliver the government’s vision for the Northern Ireland Protocol and facilitate the flow of trade between Great Britain and Northern Ireland
3. stability and resilience of the IT platform: laying the groundwork of technical changes required for delivery of our future operating model. To become a resilient, dynamic and responsive agency. Modernising customs processes and systems to ensure they facilitate trade and making it easier for businesses of all sizes to move their goods and trade internationally
4. making operational efficiency improvements: the programme will deliver operational efficiencies to facilitate trade and help make the UK a great place to do business

The programme adheres to HM Treasury’s Managing Public Money guidance. The programme has been awarded GMPP status and has completed Q1 and 2 reporting for 2020 to 2021 in accordance with the GMPP timeframes.

Clear governance processes have been established for effective programme management. As part of GMPP the programme will report quarterly to the GMPP Portfolio Office on progress. An assessment of the programme’s progress will be published in the GMPP annual report.

Regularity

The Taxation (Cross-border Trade) Act 2018 (TCTA), supplemented by a significant body of secondary legislation, sets out the main duty-related aspects of the customs framework. EU law as it stood at the end of the Transition Period covering non-duty matters, such as safety and security issues, has been retained and incorporated in UK law, in accordance with the provisions of the European Union (Withdrawal Act) 2018.

Further secondary legislation is planned to be introduced later in 2021. This is expected to include measures covering the movement of goods to/ from Northern Ireland, freeports, and residual EU Exit requirements.

HM Treasury approved spend of £408 million for the programme in June 2021.

Propriety

The programme continues to comply with Parliamentary requirements for the control of expenditure, with funds being applied only to the extent and for the purposes authorised by Parliament.

The Borders and Trade (formerly EU Exit and Borders) Directors General are also the joint Senior Responsible Owners (SROs) for UK Transition within HMRC. They have overall responsibility for the Department’s work in relation to the transition resulting from leaving the EU.

The programme has established a Programme Board as the key decision-making authority, attended by key stakeholders from across HMRC, Border Force and HM Treasury.

The R2 Programme was reviewed as part of the Infrastructure Projects Authority (IPA) Gateway 0 Strategic Assessment in April 21, with recommendations being implemented.

Value for money

The programme follows The Green Book methodology, including HM Treasury’s 5-case model. This involves developing a longlist of options and conducting an appraisal to draw up a shortlist of options before completing a full economic appraisal of the shortlisted options. Value for money is recognised as a key factor in the commercial strategy within the programme business case approved by HM Treasury.

To secure Value for Money, the R2 Programme will use numerous suppliers and partners to advise on and deliver specific areas of scope. It will be a mix of using existing contracts, selecting suppliers from Crown Commercial Services (CCS) frameworks, or running procurements in line with public contract regulations.

Delivery of the programme will enable HMRC to be a trusted, modern tax and customs authority, which will help drive economic growth, and improve compliance and customer experience. It will support the government’s 2025 Border Strategy to have the world’s most effective border which will create prosperity and enhance security for a global UK.

Feasibility

The programme leadership, supported by delivery partners, has the skills and experience needed to achieve the project deliverables within the required timeframe.

The programme regularly monitors capacity and resource requirements, progress against delivery plans, risks and dependencies.

The programme is subject to the requirements of the GMPP and is subject to review by the Infrastructure and Projects Authority (IPA). The programme was assessed in an IPA gateway review in April 2021, which provided an independent view regarding feasibility. Further IPA review is planned in November 2021.

Conclusion

As the Accounting Officer for HMRC I have considered the Release 2 Programme and assessed the proposal as value for money and deliverable. Consequently, I have approved it as of 10 December 2021. 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 this programme, I undertake to prepare a revised summary, setting out my assessment of them. This summary will be published on 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: 10 December 2021