BIS Sheffield/Government Departments outside London
Debate between Paul Blomfield and Jo Stevens
Paul Blomfield
My hon. Friend makes a very important point, and he will not be surprised to learn that I shall come back to the point a little later in my contribution.
The Government say, quite understandably, that they want to save money, but we have done the maths from the limited information that we have managed to get. This decision will cost the Department in operational costs an additional £2.5 million a year, every year. I shall press the Minister further on the figures. When we tried to get a proper cost-benefit analysis, the permanent secretary told the BIS Select Committee:
“I do not think I can point to you one specific document that covers specifically the Sheffield issue.”
Furthermore, when the Minister for Universities and Science drew the short straw in having to defend the seemingly indefensible at a Westminster Hall debate back in February, he was clearly briefed by civil servants to respond to the repeated requests we made for a cost-benefit analysis, by saying:
“I am unable to provide a disaggregated breakdown of that figure because we are talking about a system change.”—[Official Report, 24 February 2016; Vol. 606, c. 138WH.]
That is not so. I have it here in an internal BIS management document on a page entitled, “Potential Savings from Sheffield Office Closure”.
I think that there are some serious issues here relating to the hand that Ministers have been dealt by senior civil servants in their Department. Indeed, when answering an urgent question asked by my hon. Friend the Member for Sheffield, Heeley (Louise Haigh) immediately after the announcement, the Minister for Small Business, Industry and Enterprise said:
“We are confident that many of the workers will choose to take new jobs down in London.”—[Official Report, 29 March 2016; Vol. 605, c. 562.]
I am afraid that that is not the case, according to the leaked internal document, which states that
“90% of the potential savings are dependent on how many jobs are retained and moved to London.”
In other words, the more people reject the non-offer to up sticks, try to find a house in London’s hugely overheated housing market and move their children to different schools, the more money will be saved—and, to make sure of that, no relocation package was offered to the staff.
That takes me back to the obfuscation that we have encountered throughout the months during which we have debated this issue. In response to my most recent attempts to obtain the figures via written parliamentary questions, I was referred to a letter from the permanent secretary and the Chairs of the Business, Innovation and Skills and Public Accounts Committees. It sets out quite exaggerated costs for the Sheffield office, and some incredulity was expressed in the Public Accounts Committee when the issue was discussed there. Unless none of the functions being carried out in Sheffield—relating to the higher education White Paper and higher education in general, to apprenticeships, and to further education funding—is to be replaced in London, the letter provides only one side of the story, because the costs will be incurred in the replacement of the posts of people who do not move in London.
Is this simply a case of cutting 247 posts because they happen to be in Sheffield—posts which, because they are in Sheffield, are by definition, as I have said, £10,000 cheaper? A decision was made without regard for costs, without regard for the policy areas in which the people involved were working, and without regard for the expertise that would be lost. Indeed, the former—and highly regarded—Conservative special adviser in the Department, Nick Hillman, who is now head of the Higher Education Policy Institute, has lamented the loss of institutional expertise that this move will involve, and has condemned the decision for that reason.
Jo Stevens (Cardiff Central) (Lab)
Many of my constituents work for the Insolvency Service. At a time when there is a steel crisis, BHS has collapsed and other businesses are becoming insolvent, one would think that the Government would want to retain staff with expertise in insolvency, yet 153 jobs are at risk. Does my hon. Friend agree that that does not seem to be a sensible policy approach?