HMRC Office Closures

Paul Blomfield Excerpts

Tuesday 24th November 2015 Commons Chamber

[Rob Marris]

I agree. There are problems with the workforce, to which several hon. Members have referred. The chief executive of HMRC wrote to me on 12 November, saying:

“We expect that 90% of our current workforce will be able to either work in a regional centre or see out their career in an HMRC office.”

That says to me that the chief executive of HMRC reckons 10% will either not transfer or will be made redundant. That is worrying.

Reference has been made this afternoon to response times. In the first two quarters of 2015, 12 million calls went unanswered—half of all calls to HMRC. Only 39% of calls were answered within five minutes. In the third quarter of this year, after an infusion of staff, the rate of answered calls went up to 76%. That is a great improvement—except that the target is 80%, and in 2014-15 the answer rate was 72.5%. I have to say to the Government, and particularly to the Chancellor of the Exchequer, who has a family business, that this is the worst of statism. If HMRC were a business, it would have gone bust with that appalling customer service, but because none of us has any choice but to pay taxes, it remains in business. It should not do so. It certainly needs transforming, but cutting the number of staff does not seem to me, or my party, the way to do it.

On anti-money laundering, London is thankfully a major world financial centre, but we have a huge problem with the regime set up to deal with money laundering and to counteract it. The average HMRC fine in 2014-15 for money laundering was £1,134, according to Transparency International, which I thank. That seems a remarkably low figure, although it is not helped by the fact that 14 different regulators are involved in accountancy. If that is not sorted out, HMRC staff cannot do their job properly in relation to anti-money laundering, let alone tax evasion.

As has been said, since June 2014, HMRC has not had any face-to-face walk-in centres. There are a few teams of mobile advisers—a man in a white van dashing around Northern Ireland or northern Scotland, up to Caithness or wherever—for those who desperately need a face-to-face interview, but that is a very unsatisfactory state of affairs, and not one that encourages the taxpayer to feel confident that they are getting the service they should from HMRC. It is extremely worrying that the number of offices is being reduced from 170 to 13.

[Paul Blomfield (Sheffield Central) (Lab)]

My hon. Friend will recognise that this is a massive programme involving 56,000 staff, the closure of 140 offices and relocation to 20 sites that have yet to be acquired, all within five years. In the 2015 civil service staff survey, almost 80% of HMRC staff thought their management were unable to manage change effectively. Does he agree that there are huge risks in the programme, and that it is potentially a disaster waiting to happen?

[Rob Marris]

There are huge risks, partly to do with insufficient funding, insufficient staffing and an insufficient number of offices. I regret to say that in my constituency, Crown house—the second and final HMRC office in my constituency—will close. The only silver lining for people in my region is that the specialist office in Telford, Shropshire, down the road, will continue to be HMRC’s IT headquarters.

As a result of these relocations and closures, it is likely that HMRC will haemorrhage staff. It employs a lot of specialist staff. Unlike in many other Departments, an awful lot of staff in the Treasury are very mobile, as there is a ready outlet to the private sector, which often pays more.