The civil service’s biggest union has warned that Valuation Office Agency staff are at risk of losing prized terms and conditions as a result of the arm’s-length body’s “integration” with HM Revenue and Customs.
PCS said negotiations on T&Cs for the roughly 3,850 VOA staff who will be joining HMRC by April next year have so far found bosses at the tax agency pushing back on several areas where the VOA currently has a more favourable offer for employees.
The union added that the situation – and fears for the future of six VOA offices following the absorption into HMRC – was likely to fuel an exodus of staff with hard-to-replace skills and experience.
The VOA is responsible for compiling and maintaining lists of Council Tax bands for homes in England and Wales, and doing the same for commercial properties in relation to business rates. It also advises ministers on valuation, property issues and benefits, as well as providing impartial professional valuation and property advice across the public sector.
Seven months ago, the government announced that VOA would be brought in-house at parent department HMRC as part of a bid to save up to 10% in administration costs by 2028-29.
The news came weeks after PM Keir Starmer’s announcement of a review of arm’s-length bodies, which coincided with the decision to abolish NHS England and bring its operations back in-house at the Department of Health and Social Care.
PCS said that when the announcement of the integration was made, its members at VOA had been told by senior leaders at the arm’s-length body and HMRC that there would be no detriment to them because of the transfer.
“They were told they might not even notice the transfer in practical terms and there would be virtually no change to their working lives or the services they provide,” the union said.
PCS said that a “different picture” had begun to emerge since the start of talks with management on the practicalities of the integration.
HMRC ‘enforcing move to its terms’
“Wherever there is a difference in staff policies, terms or conditions there is an expectation that VOA staff will adopt the HMRC version unless agreed otherwise,” PCS said. “And there are virtually none which they are willing to agree.”
The union acknowledged that there were some cases in which the adoption of HMRC terms would be beneficial for VOA staff. However, it said there are “a whole number” of areas where VOA staff are facing change for the worse, and in which HMRC had “strongly indicated” an intention “enforce the move to their terms”.
PCS told Civil Service World that around 20 areas of T&Cs remained to be agreed with HMRC, including inner-London premium, flexible working, disability-support leave, disability-adjustment leave, carers’ leave, and professional subscriptions.
It said VOA inspectors and surveyors have expertise that cannot be easily replaced, and experienced staff are highly sought after in the private sector, where better-paying jobs with more equitable benefits, such as car allowances, are on offer.
PCS said job-security and T&Cs were the reason most officials stayed in the public sector and that compromising on those areas “risks a significant drain of talent”. It said that loss of staff is already under way.
The union added that HMRC had refused to provide assurances on the future of VOA offices outside of existing regional hubs, beyond the current lease periods for those spaces.
It told CSW that there are believed to be six offices with leases that could potentially be ended within a year of the integration into HMRC. The union said the situation is a “great concern” for members in terms of certainty for the future of their workplace.
‘There will be lessons to learn’
Civil service union Prospect also has members at VOA and is part of the talks on the agency’s integration into HMRC.
Deputy general secretary Steve Thomas said there had been progress in some areas, including protecting specialist pay grades within VOA. He said work is ongoing to “secure movement” on issues that are very important to members, such as carers’ leave.
“This is a significant test of how the government approaches arm’s-length body reviews, particularly where they are brought back inside departments,” he said.
“Merging two different sets of terms and conditions is always going to create challenges and Prospect has been clear with ministers that if they want to get it right the only way is through early and meaningful consultation with unions.”
Thomas said there would be lessons to be learned from the VOA process that could be applied to other such mergers.
“We will be working closely with departments to ensure best practice is adopted,” he said.
HMRC said moves into the department would follow the Cabinet Office Statement of Practice – COSOP, providing protections similar to TUPE for public-sector transfers.
It said there are “no plans” to reduce the number of VOA offices, but added that HMRC would review leases as they come up for renewal to ensure the department’s estate provides value for money.
“Bringing the VOA into our modernisation programme will improve its operations for businesses and other taxpayers, while also saving money on administration,” a spokesperson said.
“The expertise of VOA staff remains highly valued and there will be no change to most roles. Any changes will be implemented with appropriate consultation with trade unions and support for staff.”