I'm giving my backing to the East Kilbride News “Stay in EK” campaign to keep HMRC in the town.
I raised this at Holyrood in a member’s debate recently where I spoke alongside East Kilbride constituency MSP Linda Fabiani.
I believe that cross party support will be crucial to keeping tax jobs in East Kilbride.
During the debate I pointed to a House of Commons report that states there is no real evidence that relocating to Glasgow will save as much as HMRC predicted.
East Kilbride, Scotland’s first new town built 70 years ago, has like many other places suffered its share of job losses.
But I still believe it’s a vibrant town with a great future.
HMRC has announced it wants to close down its huge operation here – part of the fabric of East Kilbride.
Now right from the start, I said I would back any campaign to keep those jobs in East Kilbride.
I also made it plain that if there were to be banner-waving protests then I’d be an observer only.
I’ve had private discussions with a government minister – before the General Election – and HMRC officials and will revive that contact.
My view is that HMRC, like any organisation, is perfectly entitled to review its operations from time to time and perfectly entitled to conclude that they need to change the way they work.
That’s normal in private businesses and it need be no different in the public sector.
However, I think their solution - closing their East Kilbride operation by 2025 – and their Cumbernauld site – to move jobs to Glasgow city centre is misguided.
MPs on the committee of public accounts produced a pretty damning report in April.
Its summary read: “HMRC is one year into a 10 year plan to transform the way it collects tax. As part of this it plans to reduce its 170 offices nationwide to 13 large regional hubs in city centres. We do not believe that it will save as much money as HMRC has predicted and we are concerned that it has not thought through all the negative costs to the wider economy of its approach and the impact on local employment.”
Its first conclusion is highly relevant. It said: “HM Revenue & Customs has yet to demonstrate that it has a realistic and affordable plan to deliver such a radical change to its estate, and we do not believe that it needs to be based in expensive cities across the UK.”
I agree with that. Glasgow city centre is expensive.
It also said: “The Government Property Unit should set out the rationale for having regional hubs and mini-hubs and for determining their locations. It should also explain how it is taking into account the impacts on local economies when deciding how the government estate should be configured.”
It’s that local impact that most concerns me and I have not seen any evidence so far that it will be mitigated.
However, a letter to the committee of June 16 from HMRC chief executive Jon Thompson makes it very clear that they are intent on proceeding.
The same Mr Thompson told me in December that “Whilst East Kilbride might offer very competitive rent costs, it would not be right for HMRC to simply opt for the location that offers the cheapest property if an alternative site, with slightly higher property costs, offers a better overall net return for the Exchequer.”
I find that staggering.
He also said that “as the local higher education facilities offer training in the skills HMRC needs” Glasgow would provide “better access to a pipeline of talent that HMRC can attract and retain in future”.
That will be news to South Lanarkshire College and the University of West of Scotland.
I will continue to do all I can to assist with the Stay in EK campaign and I will work with all parties in doing so.