§ Mr. Cockeramasked the Chancellor of the Exchequer whether he has reached a decision on the Inland Revenue's proposals to computerise PAYE; and if he will make a statement.
§ Sir Geoffrey HoweAs hon. Members will know, a study of the full-scale computerisation of PAYE was put in hand in 1978. These studies had reached an advanced stage when the Government took office. The scheme produced after consultation with the computer industry involved the centralisation of computing capacity of a highly complex nature in 12 centres handling an average of more than 2 million taxpayers each. Despite the possible advantages of such an approach, experience shows that it carries with it a high risk of unforeseen problems, so that the expected savings and benefits are often not achieved. While they recognise the benefits which computerisation should bring, the Government feel that the basis on which it is to be done requires further consideration. The Government have, therefore, put in hand as a matter of urgency a study of alternative approaches which would414W diminish these risks and offer a greater opportunity of satisfactory development as the system evolves. The Government continue to recognise the importance of the maximum feasible involvement of United Kingdom companies and of ensuring a high United Kingdom content in the system.