HM Revenue and Customs will save £235 million over the next four years through changes in the provisioning of IT services, according to a National Audit Office (NAO) report released today.

The HMRC had a good understanding of IT costs, the NAO found, as well as good unit cost information.

"The IT directorate has used unit cost data to benchmark costs between business areas; identify waste (for example, by turning off unused licences); and raise awareness of the importance of sound financial management," the report said. "HMRC benchmarked its accommodation and IT costs against the private sector and other Government departments."

The report noted that IT savings to date had been realised through decommissioning and rationalising outdated systems, and that a centralised IT support system was in place to take advantage of economies of scale.

The cost reduction was being made within a wider "Change Programme", according to the report, which also includes projects to "maintain the integrity of HMRC’s IT systems".