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HMRC’s New Plan to Work Better with the VCSE Sector

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16 May, 2025by Caitlin MackayInformation, advice and guidance

There’s good news on the horizon for charities, community groups, and social enterprises. HMRC has launched its Voluntary, Community, and Social Enterprise (VCSE) Action Plan for 2025 - 2026, and it’s all about making procurement fairer, simpler, and more inclusive.

For those of us working in the VCSE sector, the message is clear: government is listening, and it wants to work with us more effectively.

What’s the Plan All About?

HMRC recognises that VCSE organisations bring a lot to the table, from grassroots knowledge and community trust, to agile, person-centred services. But let’s be honest, it hasn’t always been easy for smaller organisations to access government contracts or even know where to start.

This action plan sets out to change that.

The key aims are to:

  • Promote the VCSE agenda within HMRC so teams across departments understand the value and capability of the sector.
  • Break down barriers that prevent VCSEs from bidding for and winning contracts.
  • Strengthen engagement to that VCSE voices are heard in the planning and delivery of public services.
  • Track spending more effectively, so there’s transparency around how much is going to the VCSE sector — and where improvements can be made.

 

What’s Actually Changing?

To turn this vision into action, HMRC is rolling out several concrete steps, including:

  • Setting up a dedicated VCSE workstream, a focused team to champion and steer this work internally.
  • Hosting market engagement events – opportunities for VCSEs to meet with HMRC staff, hear about upcoming contracts, and ask questions.
  • Automating data collection – improving how HMRC tracks its spend with VCSE organisations, both directly and through larger suppliers.
  • Making guidance clearer – so organisations new to government procurement can understand how it all works (without needing a law degree).

 

Why It Matters

This isn’t just a box-ticking exercise. With pressure mounting on public services and communities facing ever more complex challenges, HMRC is recognising the vital role the VCSE sector plays and making space for it.

More inclusive procurement processes mean more opportunity for small and specialist organisations to thrive, contribute, and bring much needed services into the public sector fold.

This plan is a step in the right direction, and with continued collaboration, the relationship between government and the VCSE sector could become more open, equitable, and impactful than ever before.

Read the full action plan here: HMRC’s VCSE Action Plan 2025–2026