HM Revenue and Customs was formed from the merger of the
Inland Revenue and
HM Customs & Excise in April 2005. Varney was appointed the first executive chairman of the merged organisation having carried out that role in a shadow capacity from October 2004. Varney's previous career as a private sector executive differs from the traditional career path of senior
Civil Service heads. On taking the role, Varney faced a number of key challenges including maintaining business-as-usual while delivering around 12,000 staff cuts under the
Gershon Review and moving jobs out of the South-East of England under the
Lyons Review. Following the ending of his chairmanship of HM Revenue and Customs, he took up a role at
HM Treasury as a
permanent secretary. In December 2006, he delivered the report "Service Transformation: a better service for citizens and businesses, a better deal for the taxpayer", which aimed to improve the UK's service performance in interacting with citizens and businesses. ==Death==