HMRC: Building our Future Plan

Peter Grant Excerpts

Thursday 28th April 2016 Commons Chamber

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

I beg to move,

That this House has considered HM Revenue and Customs’ (HMRC) plan Building our Future which will close most of its offices and make substantial staffing reductions; is concerned that this could seriously compromise the ability of HMRC to collect tax, enforce compliance and close the tax gap; believes the plan should have been subjected to parliamentary scrutiny; and calls on the Government to ensure that Building our Future is suspended until a comprehensive consultation and review has been undertaken.

I draw the attention of the House to my entry in the Register of Members’ Financial Interests, and to my position as chair of the PCS—Public and Commercial Services Union—parliamentary group and as an active trade unionist. I thank fellow Members from all parties represented in this House for their support in securing this debate, and I thank the Backbench Business Committee for granting it.

Before I move on to the substance of the debate, I hope I may be allowed to wish Calvin Thomas well on his last day of work in this place. Calvin arrived in the House in 1989, becoming a Doorkeeper in 2000, with nine years in the Members Lobby and seven years in the Special Lobby. I know that many of my colleagues are grateful for all the help that he has given us and our family members and guests over the years, and we wish him well as he returns to his beloved island of St Helena. [Hon. Members: “Hear, hear.”]

On 12 November 2015 Her Majesty’s Revenue and Customs published departmental plans for the future structure of HMRC, entitled “Building our Future”. It is important to note that the plans were issued by the Department, rather than via a ministerial statement. That is unsatisfactory, given their impact, which includes the closure of 90% of the office network and thousands of staffing reductions.

In 2005, HMRC employed approximately 105,000 staff; in 2016, the figure stands at approximately 58,000—an almost 50% reduction. The Building our Future plan seeks to close almost all the 160-plus HMRC offices and to move to 13 regional hubs and four specialist sites. It seeks to make further job cuts to bring the headcount down by 8,000, to 50,000, although some information suggests the intention is to reduce staffing levels to 41,000.

The timeline for the proposals is in two phases: in the first phase, HMRC proposes that 21 offices are to be vacated up to March 2017; in the second phase, 27 office closures are to take place between June 2017 and March 2018. HMRC will in future be based at 13 large offices and four specialist sites, where 95% of the staff who remain after the cuts will work.

On 16 February, HMRC issued compulsory redundancy notices to 152 members of staff, 70% of whom are members of the Public and Commercial Services Union. That is the biggest number of compulsory notices issued in a single instance by any UK civil service department.

[Peter Grant (Glenrothes) (SNP)]

My hon. Friend will be aware that 11 of the compulsory redundancy notices have been imposed on constituents of mine who work at the Glenrothes HMRC office, which is scheduled to close in June. When the closure was announced, staff got the same assurances that are being given to current members of staff, but the PCS told me that, in practice, their members—many of whom had given 30 or 40 years of dedicated service to the public—were made to feel they just did not matter. Part-time workers were asked to accept relocations that would have meant they spent longer commuting than at work. Employees with care commitments were expected to work more than two hours away from their home, where they might be called to an emergency. It was even claimed that the distance they were told they would have to travel between Glenrothes and Edinburgh was based on a straight line, but it was impossible for them to take that route unless they swam across the firth of Forth. Has my hon. Friend any reason to believe that employees who are currently being threatened with redeployment or redundancy will be treated any better than my constituents have been?

[Chris Stephens]

I thank my hon. Friend for that intervention—[Interruption.] Well, we will call it an intervention. He is right to be concerned about some of the practices we are hearing about from trade union members and staff members based in HMRC. People are being called into one-to-one meetings where they are denied trade union representation. If an employee is having a meeting with a manager to discuss their job prospects, I would expect the trade unions to have access to that meeting, but they do not. Perhaps the Minister can deal with that. I will come later to the issue of travel times.

--- Later in debate ---

[Peter Dowd (Bootle) (Lab)]

I thank the hon. Member for Glasgow South West (Chris Stephens) for bringing this issue before us today.

For my constituency of Bootle these proposals are little short of disastrous—although I do not think they are proposals, as I fear that the Government have already made up their mind. At the same time, they have simply washed their hands of the matter, on the grounds that the reorganisation of HMRC has nothing to do with them. They want us to believe that HMRC is a sort of offshore haven, outside the Government’s control. I know that HMRC collects taxes on their behalf, but that is stretching the notion of a tax haven just a bit too far even for this Government.

Not only are the Government completely uninterested in what they cannot control, but they now seem to be in the business of being uninterested in what they can. They have put up a firewall between themselves and any decisions about the reorganisation, on the grounds that it is not a matter for them to interfere with. My hon. Friend the Member for Walsall South (Valerie Vaz) alluded to that. The Government believe that the HMRC board should be allowed to get on with things, unbridled by any political considerations that it might fall foul of. To put it another way, the Government have reached for the Treasury’s bargepole and are pushing this issue away from themselves.

[Peter Grant]

Does the hon. Gentleman agree it is extremely ironic that at the same time as the Government want to maintain an arm’s-length relationship between the client and HMRC, the relationship between HMRC and big businesses—including big, tax-dodging advisory businesses—is at a very short arm’s length?

[Peter Dowd]

The hon. Gentleman’s point is spot on, and in future we must try forensically to consider those connections.

I previously used the word “pusillanimous” to describe the Government’s past actions, and given the circumstances I thought that was a reasonable way of describing their approach to this issue. This issue affects the lives of thousands of dedicated civil servants up and down the country, but the Government’s claim that it has nothing to do with them rings hollow. On one hand the Government feel that the operation and reorganisation of HMRC is its business, and that they should not interfere as a matter of principle—in other words, senior civil servants and the board can just get on and do what they want, and the Government will remain silent. That is disingenuous at the very least. In short, the Government are ducking their responsibilities again.

On the other hand, like a medieval baron, the Government want to interfere in all sorts of matters that take their fancy. Only yesterday they decided that their attempts to interfere in the running of trade unions was a mistake, which led to a retreat to save the Prime Minister’s bacon and get trade union support in the referendum. The Government also feel able to interfere in the organisation of schools, how they are run, and who will or will not run them at a very local level—almost school by school. However, on a major issue to do with tax raising revenue in this country, they are silent because that is for someone else to deal with. That is not acceptable. The “nothing to do with us” old chestnut will not wash.

These proposals directly affect my constituency. HMRC has been sited in Bootle since the 1960s. There are a number of offices, with other Departments in situ employing more than 3,000 staff. That number is falling day by day. In 2005, HMRC employed 105,000 members of staff, but that number continues to fall. The so-called Building Our Future programme—a misnomer if ever there was one—seeks to close almost 160 HMRC offices and relocate them. A more accurate description would be “Demolishing our Future”.

Apparently, HMRC has criteria by which it chooses which offices are to close, but no account is taken of the impact of those closures on local communities like mine, which have thousands of jobs dependent on the service, the wider impact on the community’s social cohesion, or the effect on the many local businesses that serve those offices. I had a meeting with senior HMRC staff, for which I thank them. However, the criteria that they indicated had been used to inform the closure decisions did not on the whole stand up to much scrutiny for the offices in my constituency.

Let me give some examples. The HMRC staff talked about transport links needing to be available and robust. The Bootle office is three miles from Liverpool city centre where the new office is to be sited—I am not sure whether that site is even available yet. Bootle has excellent bus links across the city region. Indeed, there is a main bus interchange literally 200 yards from one of the main offices, and just a few hundred yards from another one. Both main sites are similarly close to five stations on the Northern and Ormskirk lines. Those stations have excellent cross-city region links, and are no more than 10 to 15 minutes ride from Lime Street station in the city centre, where apparently the office is to go. We are close to the city centre, yet the Government are saying that transport links are essential and therefore the office must be in the city centre.

No discussions have been held with the passenger transport authority in Merseyside, or with the Cheshire or Welsh transport authorities. I mention the Cheshire and Welsh authorities simply because if a substantial part of the decision is based on transport links—among other things that I do not have time to touch on now—the fact that we have not even discussed those links with the area’s transport authorities throws into doubt the robustness of the plan. Consultants were paid a huge amount for this plan, and we should get our money back from them because they pinched it from the taxpayer.