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HMRC to reveal tax office closure plan HMRC reveals tax office shake-up
(35 minutes later)
Staff at the UK's tax authority are being told of moves to regional centres across the UK, causing concern for unions. The UK's tax authority is to close 137 local offices and replace them with 13 regional centres, raising fears over job losses.
Plans to replace a large number of HM Revenue and Customs' local offices will see staff moving to fewer than 20 new centres. The closures will be complete by 2027, according to HM Revenue and Customs, but the new centres will be open in the next five years.
Staff are being told which cities will host the new offices and the effect on jobs. Cities hosting the new offices include Newcastle, Cardiff, Glasgow, Edinburgh, Bristol and Croydon.
The 10-year plan comes as HMRC faces criticism of its call centres. The plan comes as HMRC faces criticism of its call centres.
Its record of answering calls was accused of being "staggeringly bad" at the Commons Treasury committee earlier in the week. Only half of calls were answered successfully between April and June, although performance has improved since.Its record of answering calls was accused of being "staggeringly bad" at the Commons Treasury committee earlier in the week. Only half of calls were answered successfully between April and June, although performance has improved since.
Regional planRegional plan
Much of the criticism of HMRC's performance has been based on its ability to answer complex tax inquiries.Much of the criticism of HMRC's performance has been based on its ability to answer complex tax inquiries.
The authority is planning to improve the skills of staff while moving them to regional centres. Staff numbers in HMRC's 170 offices range from 6,000 to fewer than 10. The authority is planning to improve the skills of staff while moving them to regional centres. Staff numbers in HMRC's 170 offices range from 6,000 to fewer than 10. Overall, there is the equivalent of 58,000 full-time staff working for HMRC.
"We will inform our staff about the future direction of our estate. We have been clear for some time that this will mean fewer, but larger and more modern offices that will help us to deliver better services to our customers and bring in more tax revenue for public services," a spokesman for HMRC said. The new centres will be in:
"These changes are part of an ongoing modernisation programme begun several years ago and will take place over the next 10 years." Four specialist offices will also operate at Telford, Worthing, Dover and at the Scottish Crime Campus in Gartcosh.
"HMRC has too many expensive, isolated and outdated offices. This makes it difficult for us to collaborate, modernise our ways of working, and make the changes we need to transform our service to customers and clamp down further on the minority who try to cheat the system," said Lin Homer, HMRC's chief executive.
"The new regional centres will bring our staff together in more modern and cost-effective buildings in areas with lower rents."
The plan will save £100m by 2025, HMRC said.
All 281 drop-in centres for face-to-face advice have already been closed, but staff will be given at least a year's notice of the latest round of office closures.All 281 drop-in centres for face-to-face advice have already been closed, but staff will be given at least a year's notice of the latest round of office closures.
HMRC said the majority of its staff will be working in regional centres in 10 years' time. HMRC said the majority of its staff would be working in regional centres in 10 years' time.
The PCS union said that 11,000 full-time equivalent staff posts had been cut from HMRC since 2010 and any further cuts would be "absolutely devastating".The PCS union said that 11,000 full-time equivalent staff posts had been cut from HMRC since 2010 and any further cuts would be "absolutely devastating".
"Closing this many offices would pose a significant threat to the operation of HMRC, its service to the public and the working lives of staff, and the need for parliamentary scrutiny of the plans is undeniable and urgent," he said. "Closing this many offices would pose a significant threat to the operation of HMRC, its service to the public and the working lives of staff, and the need for parliamentary scrutiny of the plans is undeniable and urgent," said PCS general secretary Mark Serwotka.
HMRC said it would have fewer staff in the future but the phased approach to the move would "minimise redundancies".
'Distraction''Distraction'
Frank Haskew, of the Institute of Chartered Accountants in England and Wales, said there was likely to be more short-term pain for taxpayers trying to access HMRC services, but the long-term ambition was correct.Frank Haskew, of the Institute of Chartered Accountants in England and Wales, said there was likely to be more short-term pain for taxpayers trying to access HMRC services, but the long-term ambition was correct.
"We shouldn't underestimate the disruption that this restructuring will have on HMRC and the distraction it will cause to its leadership as they seek to implement it," he said."We shouldn't underestimate the disruption that this restructuring will have on HMRC and the distraction it will cause to its leadership as they seek to implement it," he said.
"Given the challenge of improving service standards and closing the tax gap, we are concerned that this is the wrong time to be reorganising, closing offices and cutting staff.""Given the challenge of improving service standards and closing the tax gap, we are concerned that this is the wrong time to be reorganising, closing offices and cutting staff."
Chas Roy-Chowdhury, head of taxation at the ACCA accountancy body, said he was keen for no reduction in the headcount at HMRC, but any improvement in skills to deal with more complex tax enquiries would be welcome.Chas Roy-Chowdhury, head of taxation at the ACCA accountancy body, said he was keen for no reduction in the headcount at HMRC, but any improvement in skills to deal with more complex tax enquiries would be welcome.