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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2011/03/hmrc-close-to-failing-warn-mps.jpg"><img class="alignnone size-full" title="Cuts to HM Revenue and Customs could hit small firms struggling to cope with complex tax issues" src="http://londonglossy.com/wp-content/uploads/2011/03/min-hmrc-close-to-failing-warn-mps.jpg" alt="Cuts to HM Revenue and Customs could hit small firms struggling to cope with complex tax issues"/></a></p>
<p>Cuts to HM Revenue and Customs (HMRC) could hit small firms struggling to cope with complex tax issues, the chairman of the influential Treasury Select Committee has warned.</p>
<p>Conservative Andrew Tyrie warned that HMRC &#8220;in some areas is close to being a failing institution&#8221; with poor morale following a string of high-profile blunders.</p>
<p>With the department being reorganised and facing job losses he said there was &#8220;absolutely no point&#8221; making cuts if it led to increased costs for business.</p>
<p>Leading a Commons debate on HMRC he quoted written evidence to his cross-party committee from the Chartered Institute of Taxation: &#8220;Ten years ago the Inland Revenue had the reputation of being one of the best-run departments in Whitehall. Today HMRC&#8217;s reputation is in tatters as one disaster follows another.&#8221;</p>
<p>Mr Tyrie said similar representations had been made from other bodies and added: &#8220;HMRC in some areas is close to being a failing institution.&#8221;</p>
<p>He said a civil service staff survey had found HMRC had the &#8220;lowest morale of any government department&#8221;.</p>
<p>Mr Tyrie warned: &#8220;HMRC will become dysfunctional unless action is taken to bring to an end the string of disasters that have befallen it.&#8221;</p>
<p>A reorganisation to a centralised structure was taking place, Mr Tyrie said.</p>
<p>But he asked: &#8220;Can that reorganisation now be completed while cutting so many more staff?</p>
<p>&#8220;I hope it will but you have to say it could be a triumph of hope over experience if you look at other Whitehall departments and their reorganisations.&#8221;</p>
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