Corporate report

HMRC's annual report and accounts 2022 to 2023: parliamentary accountability

Published 17 July 2023

Consolidated Statement of Outturn Against Parliamentary Supply (SOPS)

In addition to the primary statements prepared under International Financial Reporting Standards (IFRS), the Government Financial Reporting Manual requires us to prepare a Statement of Outturn against Parliamentary Supply (SOPS) and supporting notes.

The SOPS is a key accountability statement that shows, in detail, how an entity has spent against their Supply Estimate. Supply is the monetary provision (for resource and capital purposes) and cash (drawn primarily from the Consolidated Fund), that Parliament gives statutory authority for entities to utilise. The Estimate details supply and is voted on by Parliament at the start of the financial year.

Should an entity exceed the limits set by their Supply Estimate, called control limits, their accounts will receive a qualified opinion.

The format of the SOPS mirrors the Supply Estimates, published on GOV.UK, to enable comparability between what Parliament approves and the final outturn.

The SOPS contain a summary table, detailing performance against the control limits that Parliament have voted on, cash spent (budgets are compiled on an accruals basis and so outturn won’t exactly tie to cash spent) and administration.

The supporting notes detail the following: Outturn by Estimate line, providing a more detailed breakdown (note 1); a reconciliation of outturn to net operating expenditure in the Consolidated Statement of Comprehensive Net Expenditure (CSoCNE), to tie the SOPS to the financial statements (note 2); a reconciliation of outturn to net cash requirement (note 3); and, an analysis of income payable to the Consolidated Fund (note 4).

The SOPS and Estimates are compiled against the budgeting framework, which is similar to IFRS. An understanding of the budgeting framework and an explanation of key terms is provided in the Financial review section of the Performance analysis section of the Annual Report. Further information on the Public Spending Framework and the reasons why budgeting rules are different to IFRS can also be found in chapter 1 of the Consolidated Budgeting Guidance, available on GOV.UK.

The SOPS provides a detailed view of financial performance, in a form that is voted on and recognised by Parliament. The financial review, in the Performance analysis section of the Annual Report provides a summarised discussion of outturn against estimate and functions as an introduction to the SOPS disclosures.

Table 30: Summary of Resource and Capital outturn

Due to the amount of data presented, only part of the table below is visible. Please use the scollbar at the bottom of the table to view all the columns.

	SOPS note	Estimate Voted (note 1) (2022-23) £000	Estimate Non-voted (2022-23) £000	Estimate Total (2022-23) £000	Outturn Voted (note 1) (2022-23) £000	Outturn Non-voted (2022-23) £000	Outturn Total (2022-23) £000	Outturn vs. Estimate, saving Voted (note 1) (2022-23) £000	Outturn vs. Estimate, saving Total (2022-23) £000	Outturn vs. Estimate, Total Outturn (2021-22) £000
Departmental Expenditure Limit
– Resource	1.1	6,143,665	256,575	6,400,240	6,069,208	259,413	6,328,621	74,457	71,619	5,716,745
– Capital	1.2	660,511	–	660,511	556,400	–	556,400	104,111	104,111	664,529
Total		6,804,176	256,575	7,060,751	6,625,608	259,413	6,885,021	178,568	175,730	6,381,274
Annually Managed Expenditure
– Resource	1.1	13,174,598	24,987,480	38,162,078	12,534,958	21,395,291	33,930,249	639,640	4,231,829	51,319,145
– Capital	1.2	110	–	110	1	–	1	109	109	7
Total		13,174,708	24,987,480	38,162,188	12,534,959	21,395,291	33,930,250	639,749	4,231,938	51,319,152
Total		19,978,884	25,244,055	45,222,939	19,160,567	21,654,704	40,815,271	818,317	4,407,668	57,700,426
Of which:
Total Resource	1.1	19,318,263	25,244,055	44,562,318	18,604,166	21,654,704	40,258,870	714,097	4,303,448	57,035,890
Total Capital	1.2	660,621	–	660,621	556,401	–	556,401	104,220	104,220	664,536
Total		19,978,884	25,244,055	45,222,939	19,160,567	21,654,704	40,815,271	818,317	4,407,668	57,700,426

Note 1: Refer to the Supply Estimates guidance manual, available on GOV.UK, for detail on the control limits voted by Parliament.

	SOPS note	Estimate (2022-23) £000	Outturn (2022-23) £000	Variance: saving (2022-23) £000	Outturn (2021-22) £000
Net Cash Requirement	3	20,296,561	18,816,467	1,480,094	37,363,662

	SOPS note	Estimate (2022-23) £000	Outturn (2022-23) £000	Variance: saving (2022-23) £000	Outturn (2021-22) £000
Administration costs	1.1	1,027,207	1,003,125	24,082	884,711

Although not a separate voted limit, any breach of the administration budget will also result in an excess vote.

Notes to the Statement of Outturn against Parliamentary Supply

SOPS 1. Outturn detail, by Estimate Line

We are required to ensure that our expenditure remains within the voted limits set by Parliament. This note provides details of how we performed against each line of the Estimate.

Voted expenditure includes the costs of running HMRC as well as Cost of Living Payments made in the financial year. It also includes payments to individuals for social benefits, payments in lieu of tax relief and certain rates payments, shown as line L, made by the Valuation Office Agency.

RCDTS Ltd expenditure and income is included within lines A and B as appropriate.

HMRC also makes payments for which the funding is not subject to the vote system. This non- voted expenditure mainly relates to personal tax credits, other reliefs including certain corporation tax reliefs and our costs related to the National Insurance Fund.

HM Treasury requires us to further analyse our income and expenditure between administration, which relates to running the department (for example: human resources, finance, estates management) and programme, which relates to delivering our frontline services (for example: parts of HMRC that interact directly with our customers).

The following tables record our actual outturn expenditure for Departmental Expenditure Limit (DEL) and Annually Managed Expenditure (AME), voted and non-voted, against the limits set by Parliament for each line of the Estimate. SOPS 1.1 (table 31) provides analysis of resource expenditure and SOPS 1.2 (table 32) capital expenditure.

Full information about the Valuation Office Agency activities can be found within their accounts viewed at the Valuation Office Agency page of GOV.UK.

SOPS 1.1 Analysis of resource outturn by Estimate line

Table 31: Analysis of resource outturn by Estimate line

Due to the amount of data presented, only part of the table below is visible. Please use the scollbar at the bottom of the table to view all the columns.

	Estimate Net Total (2022-23) £000	Outturn Administration Gross (2022-23) £000	Outturn Administration Income (2022-23) £000	Outturn Administration Net (2022-23) £000	Outturn Programme Gross (2022-23) £000	Outturn Programme Income (2022-23) £000	Outturn Programme Net (2022-23) £000	Outturn Net Total (2022-23) £000	Variance: saving/ (excess) (2022-23) £000	Outturn Total (2021-22) £000
Spending in Departmental Expenditure Limit
Voted:
A HMRC administration	5,203,111	1,008,176	(59,763)	948,413	4,419,352	(168,481)	4,250,871	5,199,284	3,827	4,570,842
B VOA administration	186,075	–	–	–	172,682	(40,134)	132,548	132,548	53,527	143,995
C Utilised provisions	30,000	–	–	–	19,614	–	19,614	19,614	10,386	31,502
D Cost of Living	724,479	–	–	–	717,872	–	717,872	717,872	6,607	–
COVID-19 (note 1)	–	–	–	–	(110)	–	(110)	(110)	110	719,062
Total voted	6,143,665	1,008,176	(59,763)	948,413	5,329,410	(208,615)	5,120,795	6,069,208	74,457	5,465,401
Non-voted:
E National Insurance Fund	256,575	54,712	–	54,712	204,701	–	204,701	259,413	(2,838)	251,344
Total non-voted	256,575	54,712	–	54,712	204,701	–	204,701	259,413	(2,838)	251,344
Total spending in Departmental Expenditure Limit	6,400,240	1,062,888	(59,763)	1,003,125	5,534,111	(208,615)	5,325,496	6,328,621	71,619	5,716,745
Spending in Annually Managed Expenditure
Voted:
F Child Benefit	11,859,752	–	–	–	11,595,575	–	11,595,575	11,595,575	264,177	11,420,034
G Tax-Free Childcare	531,957	–	–	–	494,401	–	494,401	494,401	37,556	428,406
H Providing payments in lieu of tax relief to certain bodies | 130,061	176,992	–	–	–	7,973	–	7,973	7,973	169,019	130,003
I Lifetime ISA	466,809	–	–	–	436,809	–	436,809	436,809	30,000	418,943
J Help to Save	67,522	–	–	–	53,202	–	53,202	53,202	14,320	20,361
K HMRC administration	30,000	–	–	–	33,808	–	33,808	33,808	(3,808)	8,072
L VOA payments of Local Authority rates	71,066	–	–	–	68,117	(3,918)	64,199	64,199	6,867	78,061
M VOA administration	2,000	–	–	–	1,082	–	1,082	1,082	918	1,010
N Utilised provisions	(31,510)	–	–	–	(19,615)	–	(19,615)	(19,615)	(11,895)	(31,510)
O COVID-19 (note 1)	10	–	–	–	(132,476)	–	(132,476)	(132,476)	132,486	16,543,682
Total voted	13,174,598	–	–	–	12,538,876	(3,918)	12,534,958	12,534,958	639,640	29,017,062
Non-voted:
P Personal tax credits	10,581,755	–	–	–	8,834,945	–	8,834,945	8,834,945	1,746,810	10,605,482
Q Other reliefs and allowances	14,405,725	–	–	–	12,560,346	–	12,560,346	12,560,346	1,845,379	11,696,601
Total non-voted	24,987,480	–	–	–	21,395,291	–	21,395,291	21,395,291	3,592,189	22,302,083
Total spending in Annually Managed Expenditure	38,162,078	–	–	–	33,934,167	(3,918)	33,930,249	33,930,249	4,231,829	51,319,145
Total voted	19,318,263	1,008,176	(59,763)	948,413	17,868,286	(212,533)	17,655,753	18,604,166	714,097	34,482,463
Total non-voted	25,244,055	54,712	–	54,712	21,599,992	–	21,599,992	21,654,704	3,589,351	22,553,427
Total	44,562,318	1,062,888	(59,763)	1,003,125	39,468,278	(212,533)	39,255,745	40,258,870	4,303,448	57,035,890

Note 1: Repayments of COVID-19 support schemes received and reported in the Resource Accounts have exceeded expenditure for the financial year 2022 to 2023.

Full information about VOA payments of Local Authority rates can be found at the Valuation Office Agency page of GOV.UK.

SOPS 1.2 Analysis of capital outturn by Estimate line

Table 32: Analysis of capital outturn by Estimate line

Due to the amount of data presented, only part of the table below is visible. Please use the scollbar at the bottom of the table to view all the columns.

	Estimate Net Total (2022-23) £000	Outturn Gross (2022-23) £000	Outturn Income (2022-23) £000	Outturn Net Total (2022-23) £000	Variance: saving/(excess) (2022-23) £000	Outturn Total (2021-22) £000
Spending in Departmental Expenditure Limit
Voted:
A HMRC administration	622,489	612,446	(87,894)	524,552	97,937	643,879
B VOA administration	38,022	32,027	(179)	31,848	6,174	20,650
C Utilised provisions	–	–	–	–	–	–
D Cost of Living	–	–	–	–	–	–
Total voted	660,511	644,473	(88,073)	556,400	104,111	664,529
Non-voted:
E National Insurance Fund	–	–	–	–	–	–
Total non-voted	–	–	–	–	–	–
Total spending in Departmental Expenditure Limit	660,511	644,473	(88,073)	556,400	104,111	664,529
Spending in Annually Managed Expenditure
Voted:
F Child Benefit	10	1	–	1	9	7
G Tax-Free Childcare	–	–	–	–	–	–
H Providing payments in lieu of tax relief to certain bodies	–	–	–	–	–	–
I Lifetime ISA	–	–	–	–	–	–
J Help to Save	–	–	–	–	–	–
K HMRC administration	100	–	–	–	100	–
L VOA payments of Local Authority rates	–	–	–	–	–	–
M VOA administration	–	–	–	–	–	–
N Utilised provisions	–	–	–	–	–	–
O COVID-19	–	–	–	–	–	–
Total voted	110	1	–	1	109	7
Non-voted:
P Personal tax credits (note 1)	–	146,843	(146,843)	–	–	–
Q Other reliefs and allowances	–	–	–	–	–	–
Total non-voted	–	146,843	(146,843)	–	–	–
Total spending in Annually Managed Expenditure	110	146,844	(146,843)	1	109	7
Total voted	660,621	644,474	(88,073)	556,401	104,220	664,536
Total non-voted	–	146,843	(146,843)	–	–	–
Total	660,621	791,317	(234,916)	556,401	104,220	664,536

Note 1: The transfer of personal tax credit receivables balance to DWP results in Capital Grant in Kind entries that net to nil.

SOPS 2. Reconciliation of outturn to net operating expenditure

As noted in the introduction to the SOPS, outturn and the Estimates are compiled against the budgeting framework, which is similar to, but different from, IFRS. Therefore, this reconciliation bridges the resource outturn to net operating expenditure, linking the SOPS to the financial statements.

Table 33: Reconciliation of net resource outturn to net operating expenditure

	Reference	Outturn (2022-23) £000	Outturn (2021-22) £000
Statement of Parliamentary Supply: Total resource outturn
Departmental Expenditure Limit	SOPS 1.1	6,328,621	5,716,745
Annually Managed Expenditure	SOPS 1.1	33,930,249	51,319,145
		40,258,870	57,035,890
Excluded from SOPS total resource outturn:
Expenditure:
Transfer of personal tax credits receivables to DWP		146,843	675,963
Non-current assets donated via a grant		–	207,424
Child Benefit (Child Trust Fund)	SOPS 1.2	1	7
Non-current asset costs outside of budgeting		7,366	(158,024)
Income:
Developer contribution received to purchase non-current assets		–	(84,673)
Grant capital income and non-current assets received		(488)	–
Payable to the Consolidated Fund	SOPS 4	(268)	(7,544)
		153,454	633,153
Excluded from Consolidated Statement of Comprehensive Net Expenditure (CSoCNE) net operating expenditure:
Expenditure:
Service concession arrangements liability repayment		(8,396)	(7,641)
		(8,396)	(7,641)
Consolidated Statement of Comprehensive Net Expenditure: Net operating expenditure	Resource Accounts	40,403,928	57,661,402

Explanation of additions and deductions

Transfer of personal tax credits receivables to Department of Work and Pensions (DWP)

The receivable balance relating to customers who have made a valid claim to Universal Credit, now administered by DWP.

Non-current assets donated via a grant

The value for the comparative year for non-current assets donated by way of a Capital Grant in Kind relates to the transfer of 100 Parliament Street assets to the Government Property Agency.

Developer contribution

The value of incentives received as we incurred expenditure. IFRS 16 was effective in HMRC from 1 April 2022. Under IFRS 16, there is no longer a difference between treatment in SOPS and Statement of Comprehensive Net Expenditure for developer contribution.

Non-current asset costs outside of budgeting and service concession arrangements

The department has capitalised certain properties that were sold to private sector contractors and subsequently leased back under a Private Finance Initiative (PFI) contract as leases under IFRIC 12 – Service Concession Arrangements. Budgetary treatment for these arrangements is determined in accordance with national accounts methodology to ensure that budgets reflect the fiscal impacts of the transactions.

Income payable to the Consolidated Fund

Income that is either in excess of limits included in the voted estimates or is outside the scope of what is allowed to be retained. For these reasons, this income is excluded from the SOPS.

SOPS 3. Reconciliation of net resource outturn to net cash requirement

The net cash requirement calculation only applies to core department and agency. As noted in the introduction to the SOPS, the outturn and Estimates are compiled against the budgeting framework, not on a cash basis. Therefore, this statement reconciles the resource and capital outturn to the net cash requirement.

Table 34: Reconciliation of net resource outturn to net cash requirement

	SOPS note	Estimate £000	Outturn £000	Outturn compared to Estimate: saving/ (excess) £000
Resource outturn	1.1	44,562,318	40,258,870	4,303,448
Capital outturn	1.2	660,621	556,401	104,220
Remove arm’s length bodies resource and capital		–	341	(341)
Accruals to cash adjustments:
Remove non-cash items:
Depreciation and amortisation		(541,211)	(473,886)	(67,325)
New provisions and adjustments to existing provisions		(32,000)	(20,984)	(11,016)
Other non-cash items		–	(29,801)	29,801
Reflect movement in working balances:
Increase/(decrease) in inventories		–	190	(190)
Increase/(decrease) in receivables		292,378	64,097	228,281
(Increase)/decrease in payables		567,000	(66,981)	633,981
Use of provisions		31,510	19,615	11,895
Other adjustments:
Remove non-voted budget items		(25,244,055)	(21,491,395)	(3,752,660)
Net cash requirement		20,296,561	18,816,467	1,480,094

SOPS 4. Income payable to the Consolidated Fund

SOPS 4.1 Analysis of income payable to the Consolidated Fund

In addition to income retained by us, the following income is payable to the Consolidated Fund. This is income which is outside the ambit of the Supply Estimate and is required to be paid over to HM Treasury.

Table 35: Analysis of income payable to the Consolidated Fund

	Reference	Outturn (2022-23) £000 Accruals	Outturn (2022-23) £000 Cash basis	Outturn (2021-22) £000 Accruals	Outturn (2021-22) £000 Cash basis
Income outside the ambit of the Estimate	SOPS 2	268	268	7,544	7,544
[Excess] cash surrenderable to the Consolidated Fund		–	–	–	–
Total amount payable to the Consolidated Fund	Resource Accounts, CSoCiTE	268	268	7,544	7,544

SOPS 4.2 Consolidated Fund income

Consolidated Fund income shown in SOPS note 4.1 above does not include any amounts collected by the department where it was acting as agent of the Consolidated Fund rather than as principal. Full details of income collected as agent for the Consolidated Fund are in the department’s Trust Statement.

Losses and special payments

These losses and special payments relate to the running of the departmental group. Full details on revenue losses can be found in HMRC’s Trust Statement.

Losses statement

Losses are made up of remissions and write-offs. Remission is the process used to identify and separate money owed to HMRC which we have decided not to pursue – for example, on the grounds of value for money. Write-offs is the term used to describe money owed to HMRC that was considered to be irrecoverable – for example, because there were no practical means for pursuing it.

Table 36: Losses statement

Due to the amount of data presented, only part of the table below is visible. Please use the scollbar at the bottom of the table to view all the columns.

	Core department and agency cases (2022-23)	Core department and agency £m (2022-23)	Departmental group cases (2022-23)	Departmental group £m (2022-23)	Core department and agency cases (2021-22)	Core department and agency £m (2021-22)	Departmental group cases (2021-22)	Departmental group £m (2021-22)
COVID Schemes
Job Retention Scheme	–	–	–	–	155	0.8	155	0.8
Self Employed Income Support Scheme	1	–	1	–	360	0.3	360	0.3
Working Households Receiving Tax Credits	–	–	–	–	2,929	1.5	2,929	1.5
Personal tax credits remissions (note 1)	592,956	178.2	592,956	178.2	499,438	24.2	499,438	24.2
Personal tax credits write-offs	4,991	3.1	4,991	3.1	6,759	5.6	6,759	5.6
Child Benefit remissions and write-offs	40,729	8.6	40,729	8.6	53,133	5.5	53,133	5.5
Exchange rate losses	29	0.1	29	0.1	40	0.8	40	0.8
Others	253	(0.9)	253	(0.9)	1,006	(1.0)	1,006	(1.0)
Total 638,959	189.1	638,959	189.1	563,820	37.7	563,820	37.7

In 2022 to 2023 £181.3 million of personal tax credit debt was remitted/written off as it was uncollectable (2021 to 2022 £29.8 million). For further information see the Resource Accounts (notes 5.1.1 and 5.1.2).

In 2022 to 2023 the department wrote off £8.6 million of Child Benefit debt that was uncollectable (2021 to 2022 £5.5 million).

There were no individual cases of more than £300,000.

Note 1: The significant increase in personal tax credits remissions is due to a bulk remission exercise undertaken during 2022 to 2023.

Special payments

These include compensation and ex-gratia payments in respect of personal injury, damage to property and those which result from the department’s redress policy. For further information on reporting requirements please see guidance in Managing Public Money, Annex 4.13.

Table 37: Special payments

Due to the amount of data presented, only part of the table below is visible. Please use the scollbar at the bottom of the table to view all the columns.

	Core department and agency cases (2022-23)	Core department and agency £m (2022-23)	Departmental group cases (2022-23)	Departmental group £m (2022-23)	Core department and agency cases (2021-22)	Core department and agency cases (2021-22)	Departmental group cases (2021-22)	Departmental group £m (2021-22)
Payments and accruals (note 1)	1,408	4.4	1,408	4.4	27,317	15.5	27,317	15.5

Severance payments are included within special payments shown above. These are paid under certain circumstances to employees, contractors and others outside of normal statutory or contractual requirements, when leaving employment in the public service, whether they resign, are dismissed, or reach an agreed termination of contract. For 2022 to 2023, we made 10 payments totalling £348,090 (2021 to 2022 17 payments totalling £519,369) in respect of severance cases. The highest payment was £196,000 (2021 to 2022 £87,000) and the lowest payment was £590 (2021 to 2022 £490). The median payment was £16,750 (2021 to 2022 £25,000).

HMRC has made a number of special payments, in agreement with HMT, to European Economic Area and Swiss residents, who did not apply for EU Settlement Scheme Status by 30 June 2021 deadline. Failure to meet the deadline, meant that these citizens faced losing their legal entitlement to access government benefits and services. These special payments enable HMRC and DWP to support and protect our most financially vulnerable claimants, for a time limited period whilst their status is resolved. HMRC paid 687 claims at a value of £0.5 million (2021 to 2022 13,211 claims at a value of £11.6 million), with the highest payment at £19,218, and with an average payment of £678.

Details of cases more than £300,000

There were no individual cases of more than £300,000.

Note 1: Special payments, in agreement with HM Treasury, to European Economic Area and Swiss residents, who did not apply for EU Settlement Scheme Status by 30 June 2021, have been reported on a paid basis.

Fees and charges

The fees and charges table lists the services HMRC provides to external and public sector customers where the full cost to HMRC exceeds £10 million. This includes services hosted by HMRC on behalf of other government departments as HMRC has the required infrastructure. In accordance with HM Treasury guidance in Managing Public Money, it is HMRC’s financial objective to recover the full cost of each service unless otherwise stated. Disclosed in the table for each service is the income received, the full cost incurred and the amount of any surplus or deficit between the income received and full cost charged. Surpluses and deficits can arise for a number of reasons, including demand fluctuations or variations to HMRC costs during the year.

Income received by the department which is not disclosed in this note amounts to £121.2 million and as this figure is not material to the accounts the department has not published a separate income note.

Table 38: Analysis of income where full cost exceeds £10 million

Due to the amount of data presented, only part of the table below is visible. Please use the scollbar at the bottom of the table to view all the columns.

	Income (2022-23) £m	Full cost (2022-23) £m	Surplus/ (deficit) (2022-23) £m	Income (2021-22) £m	Full cost (2021-22) £m	Surplus/ (deficit) (2021-22) £m
Fees and charges raised by the Valuation Office Agency (VOA)
District valuer services	17.1	16.7	0.4	16.2	14.4	1.8
Business rates and Council Tax	12.8	12.5	0.3	9.6	8.7	0.9
Fees and charges raised by the core department
Memorandum of Terms of Occupation (MoTO) (note 1)	46.0	46.0	–	59.1	59.1	–
National Minimum Wage	27.8	27.8	–	25.6	25.6	–
Economic Crime Supervision (note 2)	26.9	26.6	0.3	24.9	20.1	4.8
UK Border Agency	11.5	11.5	–	11.5	11.5	–
Collection of student loans	9.7	9.7	–	10.2	10.1	0.1
Total	151.8	150.8	1.0	157.1	149.5	7.6

Note 1: MoTO is when there is an agreement between 2 or more Crown Bodies which allows for them to share the costs of occupying a building or part of a building. The income and full cost shown above is where HMRC is the major occupier of a building and has recharged the costs to other Crown Bodies who also occupy the buildings.

Note 2: This was formerly called Anti-Money Laundering Service.

Remote contingent liabilities

In addition to contingent liabilities reported within the meaning of IAS 37, the department also reports liabilities for which the likelihood of a transfer of economic benefit in settlement is too remote to meet the definition of contingent liability.

The department has the following quantifiable remote contingent liabilities.

Table 39: Indemnities

	1 April 2022 (£m)	Increase in year (£m)	Liabilities crystallised in year (£m)	Obligation expired in year (£m)	31 March 2023 (£m)	Amount reported to Parliament by departmental minute (£m)
Indemnities	12.2	65.2	–	(21.1)	56.3	–

Managing Public Money requires that the full potential costs of indemnified contracts be reported to Parliament.

Reconciliation of contingent liabilities included in the supply estimate to the Resource Accounts

Quantifiable Contingent Liabilities

Description of Contingent Liabilities	Supply Estimate (£000)	Amount disclosed in Resource Accounts (£000)	Variance (Estimate – Amount disclosed in Resource Accounts, £000)
Legal claims	123,025	139,438	(16,413)
Other	76,029	56,392	19,637
Valuation Office Agency	1,000	–	1,000

Quantifiable Contingent Liabilities

Description of Contingent Liabilities	Included in the Supply Estimate (Yes/No)	Included in these financial statements (Yes/No)	Explanation of difference
Legal claims	Yes	Yes	Amount disclosed in this Resource Account was £16.4 million (13%) greater than the Estimate. This is due to the value of existing cases increasing as cases progress and also new cases being created.
Other	Yes	Yes	Amount disclosed in this Resource Account was £19.6 million (26%) less than the Estimate. This is mainly due to cases becoming accruals and provisions.
Valuation Office Agency	Yes	Yes	There has been no material move in the contingent liability, further details of which are not disclosed so as not to prejudice the outcome of litigation.

Jim Harra
Accounting Officer
6 July 2023