HMRC Tax Office: Cumbernauld — House of Commons, 2020-01-14
Topic: Macroeconomics
Stuart Campbell McDonald (Scottish National Party, Centre-left): I agree wholeheartedly with my hon. Friend Secondly, the Government must take responsibility for the consequences of the proposed closure on the town of Cumbernauld. It is fair to say that HMRC and the Government have failed to show one iota of interest in the implications for the town and community. Earlier written answers sought to assure us that all the appropriate impact assessments would be carried out, but they proved to be hollow assurances as the economic impact assessment was never commissioned Thankfully, after a little encouragement, North Lanarkshire Council worked effectively with PCS to do what the Government should have done and looked at the economic consequences for Cumbernauld. The assessment confirmed what we all could guess: local shops and businesses benefit greatly from the footfall of tax office workers spending money in the town centre adjacent to the tax office building. A conservative estimate suggests an annual loss of almost £1 million at supermarkets, local cafés and food outlets alone. That significant loss of footfall will have a severe impact on the local economy However, absolutely none of that has played any role in HMRC’s plans, and it has shown no interest in the impacts. If HMRC will not listen, the Government should. As my hon. Friend the Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron) mentioned earlier, the Government’s towns strategy, published last November, said that "for too long, the benefits of this unprecedented growth in many of our world-renowned cities has not been felt as strongly by communities in our towns and rural areas… Successive Governments have often focused on cities as engines of economic growth." I largely agree with that, but a focus on rebalancing is exactly why the tax office ended up in Cumbernauld in the first place. During the 1960s and 1970s, there was cross-party consensus not only on dispersing existing civil service jobs from London to other parts of the UK, but on the creation of new positions. It was against that background that Cumbernauld was selected for a new accounts office in 1976, albeit that the opening was later postponed until 1978. The office was expected to have a hugely positive impact on employment in the town, with most of the jobs being new and recruited locally, and that is exactly what happened. Everyone in Cumbernauld knows somebody employed in the tax office. What a tragedy it is that, 40 years on, UK Ministers are standing idly by as HMRC runs roughshod over such policy goals In reality, the "Building our future" programme seems to be doing the opposite of the Government’s stated aim of renewing our towns. New offices are being located in prime inner-city locations in places where I have absolutely no doubt that the offices would have been filled by private sector tenants in any event. That is not the case in Cumbernauld where the site owner, Mapeley, is protecting its position in case HMRC fails to renew the lease, but it is not protecting the position by seeking new people for the lease and creating new jobs, but by knocking it down and seeking planning permission to build houses on the site. New housing is needed, but not at the expense of around 1,200 good-quality jobs.