Madam,
When I updated the States of Deliberation at the end of September on the financial position, I also briefly addressed the challenges being faced by the Revenue Service. At that time, I committed to give a further update before the end of the year. So, I thank you Madam for giving me permission to do so today.
I will start with an operational update on the Revenue Service, especially customers waiting for assessments and repayments, and the enormous pressure on the team working to bring assessments up to date.
When I last spoke in September, I reported that over 30,000 assessments had been issued between April and July of this year, generating more than 6,000 credit balances - most of which require repayment. At that time, just over 1,000 repayments had been processed. As of last week, that number had risen to 3,645.
Repayments are being risk-assessed and processed manually while the new automated system is being finalised, tested, and implemented. Clearing this backlog remains the top priority.
However, while processing repayments has been the highest priority, this has slowed the issuing of new assessments. Since my last statement, only 3,162 assessments have been finalised.
As a result of intermittent issues with public online access to the Revenue Service system over recent weeks, we have taken the decision to extend the deadline for tax submissions to 31st January 2026. A key reason for extending the deadline is that online returns are strongly encouraged, as they reduce errors and accelerate processing through automated risk assessment. Providing additional time will help ensure the online service is stable and accessible for customers who wish to file digitally. While the deadline has been extended, customers are encouraged to file as early as possible to help reduce pressure on the system and support a smoother flow of processing and assistance. To help taxpayers, the Service will continue to conduct drop-in sessions to assist with online registration and submission.
We do though recognise many customers still prefer paper, so this year we have made paper forms more readily available. In addition to the usual locations for picking up these paper returns, they have also now been made available to collect from the reception are at Edward T Wheadon House, so customers can call at the office and collect a blank return without needing to queue, which we know was a frustration for many previously.
In the intervening two months since my last Statement, it has become clear to the Policy & Resources Committee working closely with the Chief Executive, that the transition to the modern systems developed for the Revenue Service, which has clearly been so challenging, is unfortunately the symptom of a much wider set of problems. So, I now to wish to speak more broadly about these.
I want to set out at a high level the issues, and what we are doing to put them right to ensure that these failures are not repeated.
The Chief Executive has serious concerns about the way major projects have been run over many years, with repeated failures to deliver what was promised or achieve the intended benefits. The Revenue Service Transformation is a £24 million programme that has been closed formally – although we have ended-up with a system that is not yet complete, has reduced functionality, provides poor service levels for customers, and a system with a limited life span. How on earth did this happen?
It is important to be clear: these failures do not sit with front line staff. Our staff have worked tirelessly to keep services running despite poor systems, unclear responsibilities, and inefficient processes. They have shown professionalism and commitment under difficult circumstances. We wish to put on record, again, our thanks to each of them, many of whom we met when visiting their offices. We intend to continue being visible and transparent in what we find as we continue to lift the lid. Like the public, they deserve better.
Sadly, the issues with major programmes are not isolated to the Revenue Service Transformation programme - they reflect structural and cultural problems that have undermined the effectiveness of other major programmes. The original MyGov programme, which cost £18 million, appears to have delivered very little of what was promised. These failures represent an unconscionable waste of public money. They have damaged trust and confidence in our ability to deliver change effectively. That is not acceptable. To this we can add the Electronic Patient Record, which is running behind schedule and budget. And while it is true that poor IT project
delivery is a challenge experienced across many jurisdictions, in both the public and private sectors, that cannot and must not be used as a shield for our own shortcomings. We should not benchmark ourselves against mediocrity. The people of this island expect – and deserve – a public service that performs better than the norm.
The real problems are not with the frontline teams themselves, but with the way major change has been managed and overseen. Ineffective governance, and unclear accountability has allowed projects to continue without evidence of progress or value for money. We understand the importance of accountability and this will also be a core of cus of the work we are doing to address the issues.
A programme of corrective work is now being led by the Chief Executive who is here in the Assembly with me today. He will continue to report to, and is fully supported by, the Policy & Resources Committee.
This is not a paper exercise. It is a structured, focused programme designed to deliver results effectively and transparently.
His hand-picked team will work quickly to:
Forensically examine how money was spent on major transformation initiatives.
Set out a clear and factual account of what was done, how decisions were made, and why agreed objectives were not achieved.
Assess the strength off inancial controls.
Identify structural, cultural, capability or technical issues that repeatedly undermine effective change management.
Map governance failures and weak decision-making routes that contributed to waste or poor performance. – Ascertain what the politicians were being told as these projects went along.
Define the actions needed to fix failures and strengthen performance.
Ensure transparent reporting, including routine reporting to the Policy & Resources Committee and to the States of Deliberation.
This is a major exercise in lifting the drain cover sand getting a grip on things that were allowed to drift with inadequate oversight or action for too long.
The first phase of work will concentrate on the areas where the biggest problems and risks have already been identified:
Revenue Service Transformation
-The original MyGov project
Furthermore, as part of strengthening governance, the Policy & Resources Committee has agreed to establish an independent IT Advisory Panel, as recommended by the Scrutiny Management Committee review last term. It will be chaired by Deputy Marc Laine. The Panel will provide expert challenge on our digital strategy, major IT contracts, and the resilience and security of our systems. It will support the Policy & Resources Committee and the Chief Digital & Information Officer to ensure value for money and proper management of IT risks. Reporting directly to the Committee, it will bring additional transparency and independent scrutiny to the way we manage technology across the public service. This is a necessary step given the sheer extent of the challenges we face. The issues affect frontline services, internal operations, and public confidence.
The Committee is reassured by the direction now being set. Under the leadership of the Chief Digital & Information Officer, and with the active involvement of Deputy Laine, critical stabilisation work has begun and improvements are already emerging. But it is important to recognise that there remains a very substantial programme of work ahead to rebuild a reliable, secure, and modern digital foundation for the organisation.
Crucially, frontline staff know where inefficient processes are wasting time and money. They have been telling us for years. We are now listening. Part of this work must remove the barriers that stop them doing their jobs more easily and more efficiently. We want to unlock their ideas and make sure improvements actually happen.
The public deserve to know how their money has been spent and what we are doing to put things right. We will report quarterly, publicly, and without spin.
Transparency is the only way to rebuild trust.
This is not just about fixing old problems. It is about putting in place the discipline and the culture that means we do not end up here again. We must meet the bar which the public expect from their public service.
The community needs to see action, not excuses. By being honest about what went wrong and taking firm steps to fix it, we can start to restore the trust that has been damaged over many years.
Madam, this work will not be completed overnight. But it must and will be relentless and focused on outcomes. Our goal is simple: a public service that is
accountable, efficient, and worthy of the trust placed in it.
It will require sustained commitment, strong oversight, and a willingness to confront uncomfortable truths.
But it is essential if we are to deliver the public service our community deserves.
The Chief Executive is committed to this reform and the Policy & Resources Committee is committed to the openness and transparency needed to rebuild trust. The Committee will keep the States of Deliberation informed through its General Statements and as necessary additional Statements such as this one. In the meantime, I will attempt to answer the many questions Members will no doubt have.