HMRC Staff: Dudley

Lord Austin of Dudley Excerpts

Wednesday 7th March 2018 Commons Chamber

[Ian Austin (Dudley North) (Lab)]

I am grateful to have the opportunity to raise in the House the threat to 250 jobs of hard-working and highly skilled civil servants employed by Her Majesty’s Revenue and Customs at the Waterfront offices in Dudley. I am also grateful for the brilliant work done by the local representative of the Public and Commercial Services Union, Tim Crumpton, and to constituents of mine who work at the centre for speaking to me about this matter. I congratulate them on their campaign to save the jobs and to keep the staff working in our community.

These are jobs that neither the staff themselves nor the wider community in Dudley can afford to lose, and that is why I am asking Ministers to look again at this decision. We want them to keep the Brierley Hill offices open and ensure that the highly skilled HMRC staff continue to work for the Government, serving the public. As Members will know, HMRC announced a radical office closure programme in November 2015, reducing the number of offices to just 13, spread across the UK.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on securing this debate. He mentions the highly skilled employees. With the introduction of universal credit and the additional work of reviewing every former disability living allowance and current personal independence payment claim, does he agree that to dismiss highly trained staff, who are capable of working between Departments and easing the load, is folly and must be reconsidered?

[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.

[Mike Wood (Dudley South) (Con)]

I congratulate the hon. Gentleman on securing this debate on the closure of the offices in my constituency, which will affect many of his constituents. Does he agree that the success of the surge and rapid response team at the Waterfront demonstrates exactly the kind of modern capabilities that would add so much to delivering universal credit, and that the redeployment should be reconsidered, whether with DWP or with other bodies, to make use of the existing staff and skills at the Waterfront?

[Ian Austin]

The hon. Gentleman is completely right. I will make that point later. These are highly skilled, highly trained staff, who are very experienced in dealing with complex benefits. No better group of people could be employed for the introduction of universal credit. That is the case we are making to Ministers tonight and I am pleased that the hon. Gentleman is here to do so, too. I very much hope that Ministers will listen to and consider the argument over the next few weeks.

That is a really important point, because for staff in Merry Hill the closure will present grave difficulties. A high proportion of them have caring responsibilities which would make the journey to Birmingham impossible; I have spoken to mothers in exactly that position. A number of the staff came from offices that closed in the 1990s, and the journeys would make such a move impossible or impractical for them. The recent closure of the office in Walsall left more than half the staff without jobs, and the closure in Worcester is affecting nine out of 10 staff, who now face voluntary or compulsory redundancy; the majority of those staff have caring responsibilities.

HMRC insists that 90% of staff will have a job in the centres, despite the fact that all the closures so far have resulted in much higher job losses. The loss of these skilled and hard-working staff is very risky and it contradicts recommendations made by Committees of this House, which have called for a halt to the office closure process. Staff in Merry Hill believe that the DWP explanation that it has sufficient staff for universal credit to work properly flies in the face of all the current information we have about this complex new benefit’s introduction, as we heard a moment ago. Staff who work there are highly skilled: they have dealt with tax credits work since those were introduced, and they are helping with the changeover to UC from tax credits already. They were also stunned that the DWP vacancies were not even considered when the announcement was originally made.

Another point that I know will be of interest to the hon. Member for Dudley South (Mike Wood) is that the office is in the middle of a recently announced enterprise zone, DY5, and the roles undertaken by HMRC staff completely fit into the Government’s vision for this enterprise zone. This brings me to my final point, which is about unemployment in Dudley.

[Chris Stephens (Glasgow South West) (SNP)]

I thank the hon. Gentleman for securing this debate. As the chair of the Public and Commercial Services Union parliamentary group, I wonder whether he could confirm that no economic impact assessment and no equality impact assessment has been carried out prior to these closures in Dudley?

[Ian Austin]

As far as I am aware, neither of those assessments has been carried out. That is another point the Minister should be considering this evening.

Unemployment in Dudley is already higher than the national average, and we cannot afford to lose another 250 jobs from the borough. It is important that civil service jobs are spread throughout the country, benefiting communities such as mine, instead of being centralised in London or major regional centres. The UK is already one of the most centralised countries in the world. As a result, investment and growth have been concentrated in the capital and stifled elsewhere. Extraordinarily, despite all the cuts, the proportion of the country’s civil servants located in London actually increased every year between 2010 and 2015. Even with deep cuts elsewhere in the country, there were 5,000 more civil servants in the capital in 2015 than there had been in 2013. Instead of closing offices in Black country communities such as the borough I represent, the Government should be moving civil servants and staff from non-departmental public bodies and quangos out of London, transferring jobs from the capital to the rest of the country, spreading wealth more fairly across the UK and contributing to the regeneration of communities in places such as Dudley. That would improve policy making by getting central, regional and local government working more effectively together, bringing government closer to the people and ensuring that policy makers were better informed about what life is like in places that are often ignored by civil servants and politicians based in London. It would also save the Government money by getting staff out of expensive London property.

As I understand it, HMRC has announced that it will be moving 1,500 jobs out of London, so in the spirit of generosity for which we in the Black country are well known, may I tell the Minister that we would be very happy to provide a home for those 1,500 staff? I very much hope that he will consider moving those jobs out of London and to Dudley and the Black country.

Before I finish, I would like to ask some other specific questions. Staff in the office were told late last year that they would transfer to the DWP on 31 March 2022. Can the Minister confirm that it is still the plan that staff will remain in Dudley, working on tax credits, until that date? That would give time to see whether the DWP at Merry Hill can make some or all the fixed-term jobs permanent and offer them to staff there, and it would give time for staff to seek other work in the area and to be retrained. In addition, other DWP roles in local jobcentres would become available. That would not preclude staff who want to go to Birmingham from doing so, and it would offer other staff who work in Wolverhampton a stepping stone if their office does close, as many of them live in our area.

Will the Minister visit the offices with me and listen directly to the staff involved, or meet them here in London? Will he explain how this proposal reflects wider Government policy, given that Ministers recently designated the area as an enterprise zone? Finally, will he explain what assistance will be provided to staff who cannot transfer elsewhere or who do not get jobs elsewhere, to help them to obtain alternative employment if the proposed closure goes ahead?

The decision to close the Merry Hill office came as a huge shock to staff. Many of them will not be able to transfer and Dudley cannot afford to lose their jobs. It is my job to stand up for local people, which is why I secured this debate to demand that Ministers think again. These are hard-working and highly skilled public servants. They are very worried about their future and we need to secure their jobs. That is why we are here today, and I very much hope that Ministers will listen.