HMRC Tax Office: Cumbernauld

Patrick Grady Excerpts

Tuesday 14th January 2020 Commons Chamber

[Stuart C. McDonald]

I agree wholeheartedly with my hon. Friend.

Secondly, the Government must take responsibility for the consequences of the proposed closure on the town of Cumbernauld. It is fair to say that HMRC and the Government have failed to show one iota of interest in the implications for the town and community. Earlier written answers sought to assure us that all the appropriate impact assessments would be carried out, but they proved to be hollow assurances as the economic impact assessment was never commissioned.

Thankfully, after a little encouragement, North Lanarkshire Council worked effectively with PCS to do what the Government should have done and looked at the economic consequences for Cumbernauld. The assessment confirmed what we all could guess: local shops and businesses benefit greatly from the footfall of tax office workers spending money in the town centre adjacent to the tax office building. A conservative estimate suggests an annual loss of almost £1 million at supermarkets, local cafés and food outlets alone. That significant loss of footfall will have a severe impact on the local economy.

However, absolutely none of that has played any role in HMRC’s plans, and it has shown no interest in the impacts. If HMRC will not listen, the Government should. As my hon. Friend the Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron) mentioned earlier, the Government’s towns strategy, published last November, said that

“for too long, the benefits of this unprecedented growth in many of our world-renowned cities has not been felt as strongly by communities in our towns and rural areas… Successive Governments have often focused on cities as engines of economic growth.”

I largely agree with that, but a focus on rebalancing is exactly why the tax office ended up in Cumbernauld in the first place. During the 1960s and 1970s, there was cross-party consensus not only on dispersing existing civil service jobs from London to other parts of the UK, but on the creation of new positions. It was against that background that Cumbernauld was selected for a new accounts office in 1976, albeit that the opening was later postponed until 1978. The office was expected to have a hugely positive impact on employment in the town, with most of the jobs being new and recruited locally, and that is exactly what happened. Everyone in Cumbernauld knows somebody employed in the tax office. What a tragedy it is that, 40 years on, UK Ministers are standing idly by as HMRC runs roughshod over such policy goals.

In reality, the “Building our future” programme seems to be doing the opposite of the Government’s stated aim of renewing our towns. New offices are being located in prime inner-city locations in places where I have absolutely no doubt that the offices would have been filled by private sector tenants in any event. That is not the case in Cumbernauld where the site owner, Mapeley, is protecting its position in case HMRC fails to renew the lease, but it is not protecting the position by seeking new people for the lease and creating new jobs, but by knocking it down and seeking planning permission to build houses on the site. New housing is needed, but not at the expense of around 1,200 good-quality jobs.

[Patrick Grady (Glasgow North) (SNP)]

My hon. Friend is being generous with his time. I am incredibly disturbed by a lot of what he is saying, because I seem to remember in 2014 that the presence of all these civil service jobs at HMRC and, as we were discussing last night, at the Department for International Development site in East Kilbride was one of the strengths of the Union. All those jobs were going to be at risk if Scotland voted for independence. Has he noticed that all the warnings about the risks of voting for independence—losing civil service jobs and economic chaos—are starting to come true? Will he tell the House whether we voted for independence?

[Stuart C. McDonald]

My hon. Friend makes a good point. It would not take too long to google a nice picture of the Better Together campaign outside HMRC in Cumbernauld, where it was warned that all the jobs could be retained only if we remained part of the United Kingdom. If the Government’s apparent new-found enthusiasm for protecting and nurturing towns is genuine, that is one strong reason why the Government should intervene and ensure that HMRC considers whether the closure is compatible with other Government objectives.

Of course, the other huge development since “Building our future” was first drafted is Brexit. The precise impact that Brexit will have on HMRC’s work remains as clear as mud, but it clearly means more work. Trade with the EEA, and even trade between the UK and Northern Ireland, will now have greater implications for HMRC. It has been acknowledged that significant additional staffing will be required, and it should be recognised that that need will not be temporary. It will therefore be useful to know the Government’s current estimate of the number of additional HMRC workers required as a result of Brexit. how many have been recruited and, indeed, how many have been recruited in Scotland. In short, it is clearly nonsense to think that we should simply ignore these realities and allow HMRC to press on as if nothing has happened. It is time to pause and think again.

It is frustrating that the Cumbernauld site was in the running for selection as one of the 13 hubs. To almost all intents and purposes, it meets the—albeit dubious—criteria used in the selection process. Cumbernauld is a large site, with good access by train and motorway to the cities of Edinburgh, Glasgow and Stirling, to the graduate populations located there and to the airports at Edinburgh and Glasgow. Of course, it has the added benefit of a pre-existing experienced and dedicated workforce. There is no sensible reason for not using the Cumbernauld site.

We know from written answers that HMRC has the option of extending the lease of the Cumbernauld premises. Surely it makes sense to do that now, even if at first it is for the short to medium term while we revisit the longer-term strategy of HMRC.