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flag UK tax agency HMRC criticized for rising costs, low productivity, and slow digital transformation.

flag The Commons Public Accounts Committee (PAC) has criticized the UK's HM Revenue & Customs (HMRC) for making the tax system more expensive and less trusted. flag Despite hiring more senior staff, the cost of tax collection rose by £563 million, and productivity fell. flag The PAC also highlighted HMRC's slow digital transformation, noting that 70% of its correspondence is still done by post. flag The committee warned that reliance on outdated systems makes HMRC vulnerable to AI-based threats and urged the agency to modernize.

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