A private HM Revenue & Customs staff survey has shown that since the merger of Inland Revenue and Customs & Excise in April 2005, 73% of the 18,000 staff polled believed that HMRC was changing or about to change for the worse.

HMRC board meeting minutes for February, which were released last week, revealed that the department’s leadership was extremely concerned by low morale, and that the issue would be addressed through new programme known as ‘PaceSetter’.

‘PaceSetter’ is part of HMRC’s broader departmental transformation programme, aimed at improving relationships with taxpayers and bedding down the merger between the two tax departments.

HMRC plans to use ‘PaceSetter’ to motivate and empower staff, who have been left demoralised at the prospect of 25,000 job cuts that form part of the government’s efficiency programme.

‘The Board was concerned strike action and the recent results from the staff survey reflect levels of staff motivation, but noted that PaceSetter should help create identification and ownership across the department,’ said the minutes of the meeting, which was chaired by executive chairman Paul Gray and attended by HMRC heavyweights Dave Hartnett and Steve Lamey.

The ‘PaceSetter’ programme will attempt to equip staff with ‘leadership skills’ and create ‘a culture of performance management’ and ‘ownership’ among managers.

There is pressure on HMRC to make the programme work. New chairman Paul Gray is a career civil servant and some believe he will be more sensitive to staff concerns than predecessor Sir David Varney.

Tax advisers will also be eager for the programme to have a positive impact, as efficient and motivated HMRC staff make their work easier.