HMRC Staff: Dudley

Jim Cunningham Excerpts

Wednesday 7th March 2018 Commons Chamber

[Ian Austin]

I completely agree. It is not party political knockabout to say that the introduction of universal credit is clearly not going according to plan. It has obviously hit some wrinkles along the road—that is a charitable way of putting it—and it is an odd decision to get rid of staff when we do not know how difficult it is going to be to properly introduce the new benefit.

The new regional centre for the west midlands will be in Birmingham. That led to the closure of the Walsall office in 2016, while the Worcester office is due to close next year and the Wolverhampton, Coventry and Solihull offices are due to close in 2020 or 2021.

[Mr Jim Cunningham (Coventry South) (Lab)]

I held a public meeting in Coventry at the end of January. There is a lot of concern because 300 jobs will go from the local tax office and people will either have to travel to Birmingham, or use a phone line, which is not always adequate for their needs. Does my hon. Friend agree that a halt should be called to this?

[Ian Austin]

My hon. Friend is completely right. Everybody knows how hard he fights for jobs in Coventry and that it cannot afford to lose those jobs, just like the Black country cannot afford to lose the ones in Dudley. The city council passed a motion unanimously, probably in no small part due to his campaigning.

It was announced that the Dudley office at the Waterfront and Merry Hill would be taken on by the Department for Work and Pensions, and that staff would transfer to that Department; a small number of staff would have transferred to the Birmingham office. Staff at that office employed by Her Majesty’s Revenue and Customs to work on tax credits were told in 2015 that they would be transferred to the DWP to work on the introduction and implementation of universal credit. As recently as last October, they were told that they would remain at the Waterfront offices to work on the new benefit. Instead, at the end of January it was announced that the Government had changed their mind, that their jobs were at risk and that the office would close. That came as a huge shock to the hard-working, highly skilled and loyal staff. On the same day, DWP announced up to 150 job vacancies at the Waterfront site. Inquiries have been made and they are fixed-term appointments, although local discussions have revealed that they could become permanent. The announcement had little detail and more was promised, we were told, in April 2018.

It was originally envisaged that the Birmingham regional centre would have a capacity of about 3,200 full-time equivalent staff, but when the site of the Birmingham office was announced in October, that figure was reduced to 2,600. No official reason has been given for that, but sources are very clear that it is based on the high costs of premises in Birmingham. The figure of 2,600 did not include the Merry Hill staff, because they were due to go to DWP.

We have discussed the situation in Coventry, where hon. Members, including my hon. Friend the Member for Coventry South (Mr Cunningham), have been campaigning. The same is true in Wolverhampton, where MPs also want their HMRC office to stay open. It has 300 staff and the local council also supports the campaign. Discussions have opened with Andy Street, the West Midlands Mayor, based on the combined authority agreement, which was signed by the then Chancellor with all of the West Midlands combined authority councils, and which uniquely states that there should be a regional Government hub in Birmingham and sub-regional hubs elsewhere in the region.