HMRC Tax Office: Cumbernauld

David Linden Excerpts

Tuesday 14th January 2020 Commons Chamber

[Stuart C. McDonald]

My hon. Friend has made a powerful point, and I shall say more about it later in my speech. The experience so far of similar changes in other parts of the United Kingdom seems to be that it is harmful to the collection of taxes, rather than helpful to the work that HMRC employees are trying to do.

As some Members may know—my hon. Friend certainly does—the proposal to close the Cumbernauld tax office forms part of a massive programme of reform to the HMRC estate, which has been given the title “Building our future”. Members on both sides of the House—including, obviously, my hon. Friend—may have seen similar offices close in their own constituencies, or may be battling similar proposals.

The scale of the changes and cuts faced by HMRC has been extraordinary. When it was formed in 2005, HMRC had 96,000 full-time equivalent members of staff in 593 offices; less than a decade later, staff numbers had fallen to below 60,000 based in fewer than 190 offices. “Building our future” set out to close 137 of those remaining offices, and to centralise even fewer workers in just 13 large regional hubs with between 1,200 and 6,000 staff. It seems that HMRC will shed many thousand more jobs during this process, with tens of thousands having to move location.

[David Linden (Glasgow East) (SNP)]

l commend my hon. Friend for the campaigning work that he is doing in his constituency. We often hear the Conservatives talk about going after benefit claimants. Is it not the case that in shedding these HMRC jobs, they are not going after people who should be paying their tax, but focusing on the more vulnerable in society who are just trying to get on with it?

[Stuart C. McDonald]

I agree with my hon. Friend. As I have said before and will say again, this is detrimental not only to the workforce and the town of Cumbernauld, but to the work that we require these people to do in collecting the tax that we need to fund our public services.

It is also fair to say that “Building our future” has been the subject of huge controversy since its launch. The National Audit Office and the Public Accounts Committee, among others, have made very critical comments. In Parliament, my party has devoted Opposition day time to opposing tax office closures. There have been Backbench Business debates, one of which I was able to secure and one that was secured by my hon. Friend the Member for Glasgow South West (Chris Stephens), who chairs the PCS parliamentary group. Numerous other Members on both sides of the House have tabled questions or secured Adjournment debates on specific site closures.

I make absolutely no apology for bringing this issue to the House once again, because the “Building our future” programme was flawed from the start. It remains flawed and, given the seismic changes that have happened between its initial design and now, there are strong reasons to pause, to look at what has happened so far and to consider whether it is really still worth pursuing these plans. Serious issues have been thrown up even where regional hubs have already opened. For example, in Norwich, despite emphasis being placed on proximity to universities for recruitment purposes, recruitment has apparently proved incredibly difficult. Not only are many existing staff choosing not to make the switch to the new hub, but the hoped-for recruitment of new graduates has not materialised, quite simply because they have better options in the private sector. For all these reasons, the Scottish National party manifesto again made the case for, and committed to, reconsidering these closure proposals.

My first call on the Government is simply for them to take responsibility for what is going on. That in itself is long overdue. In contrast to my colleagues, the Government have been rather less keen on bringing this issue to the House for scrutiny and debate. Even when the original list of sites to be closed was decided, no announcement was made to the House. That basically sums up how Ministers appear to see their role. Ministers hide behind HMRC’s status. Too often in these debates and question sessions, the issue is simply palmed off as one for HMRC to get on with. I recognise that Ministers cannot interfere in the day-to-day operation of tax collection, but that is not what this is about. These strategic decisions will have an impact for decades to come.

I recently joined Jamie Hepburn MSP, PCS union reps and the leader of North Lanarkshire Council, Councillor Jim Logue, in writing to the Financial Secretary to the Treasury and the chief executive of HMRC to make the case for retaining the site in Cumbernauld. We ask them to come to Cumbernauld and to meet us and the staff. We got a typically bland response from HMRC, but at least it was a response, because all we got from the Treasury was nothing at all. That sums up the total lack of interest that the Treasury has taken in the whole issue of reform of HMRC’s estate and workforce.

Let us remember that these are not trifling changes. We are talking about turning 190 offices into 13. Along the way, thousands of jobs are being cut, and huge sums of money are being thrown at new buildings, refurbishments, relocation costs and all sorts of other expenses. Morale and job satisfaction among the HMRC workforce remains among the lowest in the civil service. Both the Public Accounts Committee and the National Audit Office have raised serious concerns with the programme, so it is no longer sufficient for Ministers to wash her hands of the issue and just leave HMRC to carry on regardless.