3,400 tax and customs jobs axed

The Public and Commercial Services (PCS) union condemned the move, which it warned would be bad news for taxpayers and would lead to the loss of valuable skills and expertise.

The union expressed "deep concern" that the ability of the department to collect revenues and provide tax advice to the public and local businesses would be further undermined by the closures.

Officials said services were already suffering with a drive to axe 25,000 jobs and close more than 200 offices, leading to backlogs of post and claims that the department can only chase up those who owe £20,000 or more in tax due to a lack of resources.

Regions affected by the announcement will include: Eastern - 18 offices to close and 800 jobs to go; South West - 19 offices, 835 jobs; Yorkshire and Humber - nine offices, 400 jobs; Northern Ireland - five offices, 190 jobs; Scotland - 20 offices, 400 jobs; Wales - 11 offices, 470 jobs; North West - 11 offices to close.

PCS general secretary Mark Serwotka said: "In these uncertain economic times, these closures and job losses will hit businesses, the public and the communities they serve. Rural areas will be disproportionately hit, with face-to-face tax advice reduced to a bare minimum and quality jobs taken out of local economies. As the recession worsens, this will come as a bitter blow to a dedicated workforce and will lead to a loss of valuable knowledge and expertise."

However a spokesman for HMRC accused the union of "scaremongering" and maintained that no job cuts had been announced. What we have announced today is the last in a series of decisions in HMRC's regional review of office structure. Those offices which are going to close will be vacated on a phased basis with staff moves expected to start in spring 2009.

"Since HMRC's merger, staffing numbers have reduced by around 17,000 from around 105,000. This is part of a well-publicised strategy to improve HMRC's efficiency by 5% year-on-year up to 2011. So far, HMRC has achieved all staff reductions and efficiency targets without compulsory redundancies and it remains our intention to avoid them wherever reasonably possible," said a statement.

Meanwhile, a leading Japanese investment bank is to axe 1,000 jobs in London over the next few months under moves to ensure the company remains competitive in the current economic conditions. Nomura said the job losses from its 4,500 strong workforce in the capital would establish the right cost base going forward.

And Credit information firm Experian is to cut up to 300 jobs in the UK and Ireland before the end of March as part of an ongoing efficiency programme, the company has confirmed