Legislation has been promised to merge the Inland Revenue with HM Customs and Excise.

With efficiency in government one of the themes of Tuesday's Queen's Speech, Gordon Brown is keen to show that his department is doing its bit.

The Treasury hopes that the merger of the two major tax and revenue collection bodies will produce a more effective service.

An Inland Revenue and Customs merger bill will create "an organisational framework for delivering real improvements to tax administration".

The new department will be named HM Revenue and Customs.

And following recent scandals, there will be a new prosecutions office to take action in revenue cases.

The Queen also told MPs and peers that the government was "committed to reducing bureaucracy and the costs of government".

Treasury ministers say they are committed to savings of £20 billion a year by 2007/08.