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News - 24 January 2025

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Accounting News - 24 January 2025

In this week’s Enews, we look at a scathing report on HMRC’s customer service levels. There is also news on the UK jobs market and an upgrade to the nation’s economic outlook to update you on.

Photo by Magnet.me on Unsplash

Parliamentary watchdog accuses HMRC of deliberately ‘degrading’ phone services

Parliament’s spending watchdog has accused HMRC of deliberately running down its phone services to force people to go online, according to a report.

The Public Accounts Committee’s (PAC) report into HMRC’s customer service levels found that the average call waiting time has passed 23 minutes.

It also found that 44,000 customers were cut off without warning after being on hold for more than an hour last year.

The report said:

‘HMRC’s customer services have deteriorated even further since this Committee last reported a year ago.’

It continued:

‘HMRC says it has not been adequately resourced to meet telephone demand from customers, but it must take responsibility for its own failings to offer sufficiently effective digital services to customers. We are concerned that it has sought to degrade its telephone service to drive taxpayers to digital channels.’

It added:

‘HMRC has been too willing to let its telephone services fail in the hope this forces people to use its digital services instead.’

The PAC report made this recommendation:

‘HMRC should ensure it understands how far its digital services can replace telephone services and what level of telephone service it needs to retain to meet customers’ needs - including those of small businesses. HMRC should ensure it meets a minimum level of service for all customers, including those seven million customers HMRC estimates can’t use digital services.’

Internet link: Parliament website


Labour market challenges remain as wages grow

The UK labour market remains challenging as employers cut staff numbers and wage growth accelerated, according to the latest data from the Office for National Statistics (ONS).

Average weekly earnings in the three months to November were 5.6 per cent higher than a year earlier, both including and excluding bonuses, the ONS said.

Payrolled employment fell by 0.1 per cent between October and November and was 11,000 lower in the three months to November than in the previous quarter, said the ONS

Early estimates for December suggest a bigger month on month drop of 47,000 to 30.3mn in the payrolled workforce.

Jane Gratton, Deputy Director Public Policy at the British Chambers of Commerce (BCC) said:

‘The labour market continues to be challenging for many businesses, with wage growth continuing to rise as firms compete for skilled workers. This is a concern as they face a significant rise in employment costs in April.

‘However, there are also signs of further loosening as unemployment ticks up, vacancies continue to fall and economic inactivity dips.

‘The full impact of the changes to national insurance and the minimum wage, announced at the Budget, won’t be fully seen until later in the year. However, the warning lights on recruitment, employment and training are already flashing.’

Internet link: ONS website BCC website


IMF upgrades UK’s economic outlook

The International Monetary Fund (IMF) has upgraded its growth forecast for the UK economy this year.

The global institution upgraded its prediction for UK growth to 1.6% for this year from its previous estimate of 1.5%.

As well as upgrading its outlook for the UK, the IMF suggested the UK economy would perform better than European economies such as Germany, France and Italy over the next two years.

However, the latest IMF figures suggested the UK economy had weaker growth last year than the organisation had expected.

Rachel Reeves, Chancellor of the Exchequer said:

‘The UK is forecast to be the fastest growing major European economy over the next two years and the only G7 economy, apart from the US, to have its growth forecast upgraded for this year.

‘I will go further and faster in my mission for growth through intelligent investment and relentless reform and deliver on our promise to improve living standards in every part of the UK through the Plan for Change.’

Internet link: IMF website | HM Treasury website



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