HMRC vowed to break up with Capgemini then paid it another £4.2B
Government wants public spending to back British business, but the French supplier could remain at the tax collector until 2036
The UK tax authority, HMRC, has paid French tech company Capgemini at least £4.2 billion over 15,726 transactions since 2014, despite the government's promise to back British business with public spending. Andy Burnham, who became Prime Minister in July, stated that public procurement would support British industry, and businesses winning government contracts would need to show they were creating high-quality British jobs.
However, the relationship between HMRC and Capgemini has raised concerns about the scale of the challenge. The Register, in collaboration with Otnox, analyzed HMRC's published transactions above £25,000 and found that the government's relationship with Capgemini, which could span 32 years, demonstrates the difficulties of this policy.
HMRC officials claim that the contract awards to Capgemini are compliant with UK procurement legislation and government policy. Capgemini has continued to win work from HMRC, including contracts supporting systems it had built or operated under the Aspire contract, which began in 2004. Despite the government's goal to work with more IT suppliers and shorter, more flexible contracts, Capgemini has secured several lucrative deals with HMRC, including a £200 million contract to migrate and decommission HMRC's legacy data warehouses and a £214 million agreement to support tax systems developed under Aspire.
The relationship between HMRC and Capgemini is set to continue for another 32 years, reaching 2036, making it the longest-standing taxpayer-business partnership.
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