Fresh fears over the future of Swansea’s tax office

FRESH fears have been raised over the future of almost 300 jobs at the tax office in Swansea, after a Westminster Government minister admitted that Cardiff would be the most ‘suitable’ location for a regional centre in Wales.

Uncertainty has surrounded the future of the HMRC office at Ty Nant, on Swansea’s High Street after the Treasury revealed it plans for the majority of HMRC to based in regional centres across the UK, paving the way for just a single centre in Wales.

Labour’s shadow Wales minister, and MP for Llanelli, Nia Griffith said the strongest indication yet had been given that the HMRC offices in Swansea would be closed, after raising a parliamentary question over its future.

In her response, the Conservative Treasury minister Andrea Leadsom replied:

“HMRC has told staff that, it believes that Cardiff is the most suitable location for a future regional centre in Wales, since it is already the biggest HMRC location in the country.

“However, no firm decisions have yet been made on the precise location or timing of a new HMRC regional centre in Cardiff, or the nature and timing of impacts on other HMRC locations in Wales including Swansea.”

The issue was raised with the minister following concerns from unions, which have already seen members have to move from nine HMRC centres in South and West Wales, including Carmarthen, which is due to close in the next few months.

Steve Donoghue, branch president of the PCS Union, said: “The response given to Nia Griffith confirms what we are all fearing. This Conservative government is intent on centralising HMRC, despite the clear and unequivocal benefits of having a network of local, well trained tax professionals, who can identify local issues, know their locality and offer customers a service that they deserve.

“The decimation of the West Wales HMRC network has seen nine locations close in the last few years leaving swathes of the country without a tax presence.

“With call centre waiting times going through the roof, this is leaving many vulnerable customers in a position where they have no option but to default on their responsibilities through no fault of their own.

“It is a permit to tax avoidance and an expansion the tax gap.

“Many of my members in Swansea have already had to relocate from Carmarthen, Llanelli and Pembrokeshire to keep their jobs. Closure of Swansea will see these people effectively being thrown on the scrap heap.

Ms Griffith added: “There is no doubt in my mind that this is a very strong indication that a future Conservative Government would close down the HMRC offices in Swansea.

“That would mean an inevitable loss of experienced staff, as staff at Swansea, many of whom have already transferred from offices in West Wales to Swansea, would find it very difficult, if not impossible, to transfer to Cardiff.”

She said the latest available figures show that HMRC’s calculation of the ‘tax gap’ — the difference between how much tax should be collected and how much actually is collected — has risen sharply.

The MP added: “As soon as we legislate to close tax loopholes, there is a whole industry out there, looking at ways to get round the rules, so HMRC needs to be properly resourced to tackle aggressive tax avoidance. It is always galling to think there is anyone, particularly big companies, wriggling out of their tax responsibilities.”