Public AccountsWritten evidence from HM Treasury

Q12 Chair: Will the Treasury know? When we look at cuts across Government, it is slightly irritating, after being sold a story about increased expenditure on tobacco smuggling, which we all welcome, to find that, actually, it isn’t an increase because they have taken their cut and you have got a bit of dosh back but it isn’t quite as much as there was. And then we find that they are spending money that was spent before anyway but under the Department of Health budget. I know it is not a huge amount, but there needs to be a bit of honesty about where our tax money is going.

Marius Gallaher: We will have to give you a note on that.

Chair: You will have to give us a note?

Marius Gallaher: Yes, because I don’t know the answer to the question.

Chair: Okay. The note should say whether there was a cut in the Department of Health


Marius Gallaher: I know where you are coming from. Yes.

Treasury Response

For the financial year 2010–11, the Department of Health contributed £0.5 million to the expansion of HM Revenue and Customs’ fiscal crime liaison officer (FCLO) network. This amount funded an additional six posts and associated costs for the network. However, Ministers subsequently decided that funding for the whole of the expanded programme should be funded from HMRC’s budget from 2011–12 onwards.

Due to HMRC’s reinvestment programme, announced at the 2010 Spending Review, the net effect has been to maintain funding for the FCLO network, through a larger contribution from within HMRC’s total budget. The Department of Health’s budget has not been changed as a result.

Prepared 8th October 2013