JP Rosser, PCS HMRC Group Executive Committee member, personal capacity
What does ‘next generation facilities management’ mean for government departments under Starmer’s Labour? It means public money used for private profit, amid a backlog of repairs, temporary office closures, and staff resignations.
In May 2025, HM Revenue and Customs (HMRC – the government tax and customs authority) moved from multiple private contracts for ‘facilities management’ (FM) to one contract for the west of the UK, awarded to Sodexo, and one contract for the east of the UK, awarded to Mitie.
The new contracts bring together ‘hard FM’ – maintenance and repairs, with ‘soft FM’ – cleaning, reception, catering etc. This was supposed to deliver savings for HMRC.
It does appear that the winning bids from Sodexo and Mitie came in at a lower cost. But cheaper is rarely better.
On ‘hard FM’, key performance indicators aren’t being met. Statutory requirements aren’t being completed. Without statutory safety of offices, they have to be closed to staff. HMRC is then left paying rent on buildings it can’t use.
Other repairs are mounting up too – broken doors, cracked windows, fallen ceiling tiles, broken taps, broken toilets, faulty plug sockets – the list goes on.
On ‘soft FM’, standards are barely met or not met. This isn’t the fault of the hard-working staff – they are doing as much as humanly possible, but are expected to deliver the impossible. Due to cuts to headcount and hours, the workload is too much.
Turning taxpayer money into profit
The only winners are the companies siphoning taxpayer money into shareholder dividends.
Even this isn’t enough for Sodexo and Mitie. Sodexo is seeking to make soft FM staff redundant across all the sites it has responsibility for. Rubbing salt into the wound, the redundancy consultation was conducted in December. What kind of Christmas did Sodexo staff have?
There’s mounting evidence that Sodexo is ignoring its own redundancy policy and possibly employment law as well. And now Mitie has made the disgraceful decision to make its own cuts.
Neither company recognises the PCS union and both refuse to engage.
PCS has raised concerns with HMRC management – ie representatives of the Labour government. But HMRC says these cuts are a matter for the private contractors and it won’t intervene.
Time and again, HMRC has entered into contracts with the private sector that don’t deliver benefits. Whether it’s Mapeley, Concentrix, Fujitsu, Sodexo or Mitie, the private sector is a parasite on the public sector.
This Labour government stood on a manifesto that included the words: “Labour will bring about the biggest wave of in-sourcing of public services in a generation”. This manifesto promise – like many others – has been ignored.
Broad Left Network strategy
The PCS Broad Left Network, in which Socialist Party members participate, is putting forward a strategy for the PCS HMRC group executive:
- Publicly call on HMRC to end the contracts and bring services in-house. Current staff at Sodexo and Mitie offices should be offered roles in HMRC, on the pay, terms and conditions negotiated by PCS for all HMRC staff
- While the FM contracts remain in place, PCS must organise to seek recognition rights with Sodexo and Mitie
- Every PCS branch in HMRC needs to campaign to recruit the FM staff into PCS
- Every PCS branch should organise meetings of HMRC and FM members, to fully brief members, and gather their views and fighting ideas
Let’s build up a fight to defend all jobs and services in HMRC.
PCS national elections
Nominations run from 15 January to 5 March for election to the PCS National Executive Committee and group executives, including HMRC.
Socialist Party and Broad Left Network members are seeking nomination to stand, alongside others in the union who want to see change.
We desperately need a leadership that is prepared to stand up to Starmer’s government and fight to defend jobs, services and pay.
