The Public Accounts Committee has slammed HM Revenue & Customs over the cost of its new computer system which has tripled since 2004.
The PAC concluded in its report on the handling of the 'Aspire' computer system contract, that the way HM Revenue & Customs awarded the contract failed to reflect that its IT needs could change a lot over the course of the contract.
In its report, MPs also criticised HM Revenue & Customs for subsidising the bid costs of IT companies vying for the contract to the tune of £52m in order to secure competition.
The computer system, which supports services in areas such as child benefit payments and income taxation is run by consultants Capgemini.
The French firm won the £2.9bn contract in 2004. It increased to £4.5bn in 2005 when the Inland Revenue was merged with Customs & Excise.
After the government admitted last year that the IT system would cost £8.5bn over the 10-year life of the contract, the PAC launched its investigation.
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