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Cut to the bone

12 November 2009

HMRC announced on 15th September 2009 plans to make 30% efficiencies in customer contact directorates (CCD) over the next 2 years. Scottish YM convenor Debbie Mallet spells out what this means.

These plans will mean cuts to front line staff. A ‘3 year plan’ illustrates how cuts are going to be made.

According to HMRC, 95% of the budget is staffing costs. The budget has been reduced by 5% this year, and is expected to be further reduced by 10-15% in 2010 and 2011. We have been advised there is no immediate job threat or plans to declare staff ‘pre surplus’, although this will be an option in the future.

Recruitment bans and increasing part time working is looking likely. Enquiry centres (EC’s) have a high turnover of staff and not filling these gaps is a low impact way of meeting costs. This will have a huge effect on staff. Workloads will increase. It’ll be difficult to obtain leave and get agreement for permanent increases in hours.

HMRC may look at encouraging career breaks and unpaid leave. They could tighten up procedures such as conduct and discipline. This would help management push people out of the door quicker.

Reducing our service

Staff could be offered approved early retirement, flexible early severance or other government department transfers. HMRC states they can’t justify keeping enquiry centres open from 8am – 5pm, five days a week. The number of visitors to EC’s has dropped from 5million in 2006/07 to 3 million this year.

This takes no account of huge steps the department has taken to channel taxpayers onto phone or internet. HMRC plan to have a phased approach to reduced opening hours by focusing on 50 of the quietest offices every week from 9th November 2009.

Local communities will be heavily affected as one of the biggest employers in their area stops taking on staff. With youth unemployment set to hit one million, the government should be ensuring we don’t have another lost generation. Failure to do so will be further confirmation that they are morally as well as financially bankrupt.