According to a report from the National Audit Office, HM Revenue & Customs has frozen spending on IT.
The report analysed the efficiency of the collection of national insurance and found that no improvements will be possible in the coming financial year.
The department has frozen any spend on "routine improvements" to systems, and the report orders that the selection process for larger IT projects will become "more stringent".
The report states, "The Contributions Office has identified a significant number of further improvements it would like to implement but constraints exist on realising them.
"The selection criteria across HMRC for IT projects have become more stringent and there is no funding in 2010-11 for routine improvements."
Despite the growing concerns about the inaccuracy of the current system, HM revenue & customs have confirmed that they will not be making any routine improvements until 2011.
The report goes on to state, "The availability of funding for IT improvements is in part constraining further operational changes that the Office has identified to make better use of staff."
HMRC has suffered cuts of 25 per cent due to the government's recent emergency Budget.
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