Source · Select Committees · Public Accounts Committee
Recommendation 8
8
Changed working practices have left HMRC with more office space than it needs.
Conclusion
Changed working practices have left HMRC with more office space than it needs. We have long standing concerns about the flexibility of HMRC’s estates strategy which is seeing it move to 13 regional centres with long-term non-breakable property leases. The shift to hybrid working caused by the pandemic has reduced the office space HMRC needs. HMRC is already renting out some spare capacity to other government departments in its regional centres. HMRC relies on the Cabinet Office to identify suitable alternative users of its spare space and encourage them to use it. HMRC told us the system is working well and there is a queue of organisations wanting to use the spare capacity in its offices. We remain concerned that changes in the commercial property market could leave HMRC with unused spare space in the future. Recommendation: HMRC should: • work with Cabinet Office to draw up a plan for how they intend to make sure that spare HMRC office space is not left vacant, and write to the Committee explaining the plan within 6 months of this report; and • each quarter, report the amount and cost of empty space in its estate. HMRC Performance in 2020–21 9 1 Managing error and fraud, compliance and tax avoidance
Government Response
Not Addressed
HM Government
Not Addressed
8.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2022 8.2 HMRC anticipated changes in its office space requirements and negotiated flexibility such as assignment, subletting and sharing of occupation arrangements into its regional centre leases, which are in key locations across the UK. The department will continue to work with the Government Property Agency (GPA) and the Places for Growth Programme in the Cabinet Office to ensure that any surplus office space in staffed buildings across the HMRC estate is not left vacant. 8.3 HMRC will report back to the Committee by the end of July 2022. 8.4 The government disagrees with the Committee’s recommendation. 8.5 HMRC have reviewed its space requirements following their shift to hybrid office-home working, to establish any surplus capacity, and will continue to manage this to ensure estate capacity aligns with current and future workforce plans. Where they have identified surplus space, they have had significant success in working with GPA to enable other government departments to occupy the space, for example Cabinet Office will have their second head-office in HMRC’s Glasgow hub at 1 Atlantic Square. At appropriate intervals, HMRC will provide GPA/OGP with details of the amount and location of any remaining surplus space in their buildings, to inform the wider Government Estate Plan.