HMRC staff face long-distance relocation

A report has revealed that nearly 38,000 staff from HM Revenue and Customs (HMRC) will be required to move large distances as part of a reorganisation.

In the most extreme of these scenarios, staff from an office in Redruth, Cornwall, will be invited to move 174 miles to a new office in Bristol. Similarly, from Aberdeen and Dundee will be relocated to Edinburgh, a distance of up to 127 miles. However, the average distance is likely to be just 18 miles.

By reducing the number of its offices and moving to a regional centre model the department hopes to significantly reduce its running costs and modernise the way it works. As a result of the disruption and proposed office changes, HMRC expects that around 5,000 staff who are unwilling to relocate will leave their jobs.

The Public and Commercial Services (PCS) trade union has warned that the cuts could harm HMRC's ability to collect tax.

HMRC has long term plans to replace 170 offices across the UK with 13 large regional centres, aiming to save the taxpayer £83 million a year and provide a better service.

The department has reduced the size of its estate by over a quarter since 2011, saving £102 million (30 per cent) in its annual running costs.

However, the National Audit Office (NAO) report has revealed that the cost of the new buildings involved had also escalated by £600 million since the plan was first proposed in 2015.

The report also acknowledged that the tax authority had recognised its original plans as unrealistic, and noted that HMRC was considering changing them.

Amyas Morse, head of the National Audit Office, said: “HMRC has improved the handling of its current contract with Mapeley and achieved better outcomes, though significant risks remain.

“Looking ahead, HMRC has acknowledged its original plan for regional centres was unrealistic and is now re-considering the scope and timing of the programme. It should step back and consider whether this strategy still best supports its wider business transformation and will deliver the sustainable cost savings it set out to achieve in the long run.”