Concerns have been raised over Making Tax Digital, HMRC’s tax digitisation programme, after the tax office’s annual report revealed a security risk to the public's data. The document revealed that HMRC’s data protection compliance was a "red" coded risk - the highest level. It said: “We do not operate our security processes and controls or manage our infrastructure and vulnerabilities effectively enough to protect HMRC, our customers, people and assets from harm or misuse." Former Cabinet minister David Davis said: “The fact that HMRC itself recognises the serious risk to public data means their priorities should not be about digitising systems so much as about making them more secure." John O'Connell, chief executive of the TaxPayers' Alliance, commented: “Taxpayers expect a system that is simple and secure. We can't have an online tax system which risks our data or is easy pickings for cyber-attacks." Jim Harra, HMRC's chief executive, yesterday noted that the Government was aware of the issue, highlighting that the Treasury had provided around £1bn in the latest three-year spending review to improve the tax authority's IT and data security over this parliament.