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Fears over more customs job cuts Fears over tax and customs jobs
(about 4 hours later)
Civil service unions fear the government is prepared to make more job cuts in tax and custom offices on top of 12,500 posts already announced. Thousands of tax and customs jobs could to be axed and hundreds of offices closed to meet government cost-cutting targets, unions have warned.
Managers are due to tell HM Revenue and Customs staff about proposals to make more savings, the BBC's labour affairs correspondent Stephen Cape has learned. HM Revenue and Customs is already more than half-way through a programme to cut 12,500 jobs by 2008.
It is understood the Public and Commercial Services union has warned against any compulsory redundancies. Staff have now been briefed by managers about proposals to make more savings and union leaders fear a further 12,500 jobs could be lost.
The amount of offices in towns and cities may also be examined. HMRC denied it was announcing more job losses but was opening consultation.
The Public and Commercial Services Union has said it believes around a third of the HMRC's UK offices will close - totalling more than 200.
'Greater efficiency'
HMRC said it was not signalling more office closures or job losses, but will be consulting unions on how to deliver a more efficient service.
However, sources at the department have told the BBC that the consultation will result in another reduction in the workforce - although a final figure has not been agreed.
Union chiefs claim the cuts have already caused a backlog of a million items of post in the HMRC. These included P45s, tax codes, tax credit repayments and self assessment tax returns.
General secretary Mark Serwotka said: "It is foolhardy in the extreme to think that cutting more jobs and losing more offices will improve service levels in HMRC."
He added: "Time is running out for the Government, who need to wake up to the fact that cuts mean deteriorating service levels and who need to realise that decent public services need people to deliver them."
The union also said the office closures and job cuts increased the likelihood of a national strike ballot among all civil servants over jobs, services and pay concerns.
Departmental mergersDepartmental mergers
The 12,500 posts will be cut by 2008 - with "natural wastage" and voluntary redundancies more than half have already gone, it is believed. But HMRC said the merger last year between Customs and the Inland Revenue had helped the HMRC to go some way to meet government targets to reduce staff by 12,500 and cut costs by £30 million before 2008.
However, over the following three years it will continue to be "tough with further financial savings in administration costs", according to our correspondent. Paul Gray, acting chairman of HMRC, said "The department now has more buildings than it needs, and co-locating staff makes good business sense whilst providing the opportunity to streamline processes and eliminate duplication."
Sources have told the BBC that this will result in another reduction in the workforce, but a final figure has not been agreed. He added: "We are taking the opportunity to save taxpayers' money by operating with fewer buildings in a more co-ordinated cost efficient way."
It is thought with the merger of the two departments the network can be reduced. Targets
HM Revenue and Customs staff will be told more details at 1100 on Thursday. A source at the department said targets would be met not through voluntary redundancies, but voluntary retirements of older workers in the department. It is believed that with "natural wastage" and voluntary retirements, more than half of the 12,500 posts to be cut by 2008 have already gone.
A consultation period is set to take place with the workers and the unions. A source at the department said further targets would not be met through voluntary redundancies. Instead, a number of measures will contribute to the cuts, including "natural wastage" and voluntary retirements.
The government has rejected claims that any cut backs would lead to greater inefficiencies. A consultation period is set to take place from December between HMRC, the workers and the unions.
The government has rejected claims that any cut-backs would lead to greater inefficiencies.
In July, about 8,000 HM Revenue and Customs staff staged a 24-hour strike over the planned job cuts.In July, about 8,000 HM Revenue and Customs staff staged a 24-hour strike over the planned job cuts.