Paul Gray CB, the Chairman of HM Revenue and Customs yesterday [Nov 20] informed the Secretary to the Cabinet and Head of the Home Civil Service, Sir Gus O'Donnell, of his intention to step down from his post.
Mr Gray's decision follows the statement by the Chancellor to Parliament about a loss of data from the Department. He described the development as a serious operational failing by the Department. In a statement to his staff, Mr Gray added:
"Ensuring that our customers and stakeholders can trust how we handle sensitive information is one of our most important responsibilities. Given my overall accountability for the way the Department operates I have concluded that, as a result of the recent failings, it is right for me to decide to stand down."
The Chancellor said: "Last week Paul told me on his own initiative that given the seriousness of the operational failing, he felt he should resign. He has now confirmed that intention. I am very grateful to Paul for his huge role in the successful creation of Her Majesty's Revenue and Customs, and for his contribution to the work of government in HM Treasury, DWP and HMRC."
Sir Gus O'Donnell said: "Paul Gray has made an enormous contribution to the Civil Service over a long period of time and his contribution to the HM Revenue and Customs, first as deputy head and lately as Chairman, has delivered significant benefits for the British taxpayer.
"Paul has accepted that there have been major administrative failings in his department relating to their legal duties to protect personal information, and that he is accountable for these operations. With reluctance, I have conveyed his decision to the Prime Minister. In doing so I want to put on record my profound gratitude to an excellent colleague who over the course of nearly four decades of service, has made a major contribution to key Government achievements in economic policy, pensions, disability, and tax administration.
"It is important we learn the lessons of what happened, but also that we recognise the very real successes of the organisation. HMRC has achieved much under Paul's leadership and I share his pride in the thousands of professional and dedicated staff in the department."
The Prime Minister, with the agreement of the First Civil Service Commissioner, has agreed to the appointment of Dave Hartnett CB, as Acting Chairman of HM Revenue and Customs. A process for appointing a permanent successor will be announced shortly.
