HMRC warns minister that cuts will lead to lower tax collection

HM Revenue & Customs (HMRC) officials have warned Treasury minister David Gauke that any cuts to the department in the Comprehensive Spending Review will result in lower tax collection.

The Lib-Con coalition has asked departments to reduce spending by either 25 or 40 per cent, but HMRC civil servants told Mr Gauke in a private meeting earlier this month that any cuts, particularly redundancies, would be counterproductive.