2019 Report details for project: Building Our Future Locations Programme

Project name: Building Our Future Locations Programme - there are 3 reports for this project: 2017, 2018, 2019
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Organisation: HMRC (D25) - see all reports for this organisation
Report year: 2019 (data is from Sept 2018)
Category: Transformation - see all reports for this category
Description: HMRC’s transformation is the biggest modernisation of the UK tax system in a generation making fundamental changes to the way it operates. The ambition is to become one of the most digitally-advanced tax authorities in the world. This will be done by becoming a smaller, more highly-skilled and flexible organisation. The Locations Programme is key to HMRC’s wider transformation, by changing the working environment it will help change the way they work. The estate will be made up of 13 Regional Centres, 7 Transitional Sites and 5 Specialist Sites and a London Headquarters. This will enable HMRC to create modern, adaptable work spaces that will support the digital infrastructure, staff collaboration and development that HMRC requires to modernise. This Programme also supports the wider Government agenda to transform the Civil Service estate; all of our chosen locations for HMRC Regional Centres align with the siting of Government Hubs. The Programme will deliver both financial and non-financial benefits. The financial benefits are largely based on reduced accommodation costs. Over the 10 years to 2025 the expected cumulative net Programme benefits of around £300m. Additionally, after 2028 the Programme will deliver annual savings of over £90m. • Moving to regional centres will save around £300 million up to 2025. The Programme will deliver annual cash savings of £74 million in 2025-26, rising to around £90 million by 2028, while improving customer service and modernising how HMRC works. The Programme are also confident that it can enable a wide range of non-financial benefits, including increased use of flexible working patterns, more effective management of peaks of customer demand, improved IT delivery and people benefits including improved recruitment and staff retention.
DCA (RAG): Amber
DCA text: The Locations Programme currently holds an AMBER/GREEN IPA Delivery Confidence Rating. Significant progress made with all of the leases for Regional Centres signed, bounding the financial risk and maturing the Programme with robust Project Controls and Governance. The Programme has also made progress in the following areas: the Programme Business case has been refreshed and approved with 19/20 funding agreed; 3 Regional Centre Full Business Cases and 1 Specialist Site Outline Business Case have been approved; and the Regional Centre occupation levels are agreed with Business Groups and a change control process is in place to control any change requests
Start date: 2016-01-05
End date: 2026-03-31
Schedule text: The Programme continues to make significant progress with all 13 Regional Centre Locations now confirmed. The delivery of the Programme to time is considered probable.
Baseline: £326.10m
Forecast: £302.80m
Variance: -7.00%
Variance text: The variance is due to a decision taken as part of a HMRC prioritisation exercise to defer Newcastle and Nottingham regional centre delivery. Both were planned to commence in 2018/19 but this will now be in 2020/21.
Whole Life Cost: £2,835.90m
WLCost text: Investment to deliver 13 Regional Centres and 5 specialist sites. Includes costs related to design, fit out, furniture, IT infrastructure for the buildings and HR related costs of moving staff from the existing estate into the new buildings such as Exit costs and Daily Travel Allowance costs. Costs are in nominal prices. Whole life running costs are out of scope of the Programme but as a result HMRC running costs are expected to reduce by £90 million per annum by 2028.
Sourcefile: None

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Acknowledgement: GMPP data has been re-used under the Open Government Licence.