HMRC Closures Debate

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Department: HM Treasury
Thursday 2nd November 2017

(6 years, 6 months ago)

Westminster Hall
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Stuart C McDonald Portrait Stuart C. McDonald
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Indeed. That is the argument that I will come on to make. Centralising those jobs in city centres, which are already in many cases doing very well in terms of employment, makes absolutely no sense at all.

This debate is also important to the public and taxpayers generally. When it was formed in 2005, HMRC had 96,000 full-time equivalent members of staff and 593 offices. Less than a decade later, staff numbers had fallen to below 50,000, in fewer than 190 offices. “Building our Future” sets out to close 137 offices and centralise even fewer staff in 13 large regional hubs, with between 1,200 and 6,000 staff. Some 38,000 staff are either going to have to move or leave HMRC. From any perspective, that is a massive and radical change to how our taxes are collected to pay for the services that we all use and rely on, so it deserves the closest of scrutiny.

David Drew Portrait Dr David Drew (Stroud) (Lab/Co-op)
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Does the hon. Gentleman agree that it would help if, at the very least, some research was done into those areas that have already lost offices through the previous NOS programme, of which new Labour was monumentally supportive? We should look at the impact on those areas that have no tax office and rely entirely on phone lines or email, where lots of people cannot get any satisfaction from HMRC at all now. Would he support such an investigation?

Stuart C McDonald Portrait Stuart C. McDonald
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I agree entirely. In a nutshell, that is the point of my speech. We have an opportunity now to pause and look at what has happened and the impact it has had. When the proposals come under scrutiny, the business case for change looks decidedly dodgy, and it is also proving something of a moveable feast.

--- Later in debate ---
John Grogan Portrait John Grogan
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That was going to be my next central point. It seems very negligent that such social and economic impact assessments have not been carried out. It is no secret that one of the long-standing offices is in your constituency of Shipley, Mr Davies, which neighbours my constituency of Keighley. When we met the bosses of the Revenue, we were shocked that no such assessment had been made.

David Drew Portrait Dr Drew
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I thank my hon. Friend for being so generous in giving way. The Government and the previous Government always said that rural proofing would be part of policy making. Was there was any attempt to rural-proof this decision?

John Grogan Portrait John Grogan
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I have studied the eight points carefully, and there does not seem to be any rural proofing, which one would expect of this exercise.

There is a relatively new boss at HMRC. It will be interesting to see how much the Government will own this process and how much they will say that it is all to do with HMRC. I think the call for a moratorium is very reasonable, as it would allow us to go back and carry out some economic impact assessments. If the Government press ahead with the broad policy of regionalisation—there are many question marks against that—at the very least they should locate these offices, which are big economic drivers, in areas that would benefit from the boost that they would bring.

I join many other Members in saying that there is still time to halt this process and in asking HMRC to look again. That needs to be done, and only the Government can give those instructions to HMRC.