HMRC helpline closure: MPs attack ‘panicked response’

The debate followed the tabling of an ‘urgent question’ by Labour. The question, asking for a statement on the closure of HMRC’s self-assessment helpline, had been tabled before news of the U-turn emerged, but by the time the Commons reached this piece of business, a few hours later, the rethink had been announced.

The Financial Secretary to the Treasury (FST), Nigel Huddleston, responded that HMRC has “listened to the feedback” and announced it would be “halting planned changes to its helpline”. While HMRC encourages taxpayers to self-serve online, he acknowledged that “more needs to be done to ensure that all taxpayer needs are met”. He confirmed that HMRC helpline and webchat advisers will be available “for taxpayers who need support because they are vulnerable or digitally excluded, or have complex affairs”.

“The pace of this change needs to match the public’s appetite for managing their tax affairs online”, said Huddleston.

Responding, James Murray, Shadow Financial Secretary, asked whether any Treasury ministers had had involvement in the original decision to close the helpline. He asked if the plan had been ‘paused’ or scrapped altogether, stating: “It is clear that yesterday’s announcement of the helpline’s closure came not as part of a comprehensive, orderly or effective plan to help customers to move online, but rather as a panicked response to the collapse of HMRC’s service levels to an all-time low”.

The FST responded that HMRC is a non-ministerial department and ministers set “strategy and work closely” with the department on its operations and communications. He supported HMRC's “overall strategy”, arguing that some issues could “easily be done digitally” such as resetting online passwords, getting one’s tax code and getting one’s national insurance number.

He said that, in the tax year 2022-23, HMRC received over 3 million calls regarding these issues, which required nearly 500 full-time employees to answer them. Huddleston reassured Murray that vulnerable taxpayers will “always be able to access services, including telephone services”.

Harriet Baldwin, Chair of the Treasury Committee, referenced the committee’s recent data that showed “it is increasingly difficult to contact HMRC by telephone”. She said moving people online could not be achieved by “randomly shutting down HMRC’s telephone lines” and urged the minister to consider a “gradual transition”.

Huddleston thanked Baldwin for her input and said “HMRC has taken the feedback with good grace, because it is important that we move at the speed at which the public are willing to move. Of course, some people are not willing or able to move to purely online services”.

SNP spokesperson, Drew Hendry, considered HMRC’s initial announcement ‘irresponsible’ and welcomed the U-turn. The Financial Secretary argued that those who have used online services find them “very effective and efficient”, highlighting the result of the previous trials which, he said, indicated that “it worked quite well”.

Tan Dhesi (Lab) also criticised the ‘chaotic government U-turn’ asking why the decision was taken in the first place. He quoted a comment from a ‘Treasury source’ who said closing HMRC’s helplines would be to “the detriment of the general public and the vulnerable who need access to the helplines to support them with tax matters”.

Huddleston disagreed and reiterated that it “was never intended, and never would have been the case, that the vulnerable, the digitally excluded or those with complex affairs would be unable to access these services”.

James Sunderland (Con) raised the issue of heavy fines being imposed on self-employed people for late submission of self-assessment forms, even if no money were owed, and asked if the minister had any update on the issue.

The Financial Secretary said he would be happy to raise the issue with HMRC but he would not be able to “interfere with individual tax affairs”.

Helen Morgan (Lib Dem) questioned the ‘confidence’ in the Treasury's efficiency, citing difficulties with the Gov.uk website and long waits, as well as HMRC’s “£36 billion of uncollected tax” annually.

Huddleston argued that the UK has one of the lowest tax gaps reported in the world, around 4.8%, due to the “clarity of the tax system and the efficiency of HMRC in gaining the tax”. He acknowledged that HMRC has “customer service challenges” and said it was held into account in the Chamber, the Treasury Select Committee and elsewhere.

Caroline Nokes (Con) expressed concern that those with disabilities may find online service difficult and also highlighted that when MPs deal with HMRC on constituency work, they get ‘pushed’ into using the telephone rather than email. Huddleston replied that some MPs prefer a call and another email and it is important to “have both”.

On whether HMRC has the necessary digital tools to cater for millions of people, Huddleston recognised Tonia Antoniazzi's (Lab) point but said there is a ‘wealth’ of information on the digital offerings including the app.

Sammy Wilson (DUP) requested reassurance from the minister that the announcement is not temporary and “whatever help income tax payers require to pay their tax will be made available”. Huddleston reaffirmed the latter point and stated: “Simplifying the tax system is a goal of government policy”.

James Wild (Con) asked about the minister’s steps to improve the accountability and performance of HMRC. The FST suggested MPs could raise their concerns with him which he would share with HMRC.

Christopher Chope (Con) said: “One of the problems is HMRC’s chronic lack of productivity”, suggesting this may relate to staff working from home. Huddleston agreed with that productivity was key and reported that the Chief Secretary to the Treasury is leading a cross-government review on that. He continued that HMRC staff are required to work in the office for 60% of the time. The FST highlighted that he has asked HMRC to assess and monitor the productivity of staff who are working from home versus staff working in the office, and the result is “there is very little difference”.

Alistair Carmichael (Lib Dem) and Alison Thewliss (SNP) expressed concerns about the long wait times, with Carmichael requesting that the helplines be resourced properly to ensure they ‘work’. The FST acknowledged the concerns and said he would raise the issue with HMRC.

Jim Shannon (DUP) highlighted one million calls unanswered in January and asked the minister to ‘enhance’ the service for all of the UK and Northern Ireland to ensure that “all calls are answered” and dealt with. The FST said: “It is important that HMRC commands respect—to a broad degree, it does—across the House and among our constituents, because that is how we can ensure that we comply with tax requirements”. He emphasised accessible help, acknowledging that while online resources are beneficial for many, they're not suitable for all.

You can read the debate here.