UNION officials, politicians and business leaders have reacted with fury to government's decision to close Newton Abbot and Torquay tax office.

It was announced last Thursday that 19 tax offices are to close across the south west, affecting 835 jobs. In Newton Abbot 81 will be affected.

The cuts are part of an efficiency review of services by HM Revenues and Customs (HMRC).

Public and Commercial Services (PCS) Union SW executive member Ashley Bear said that the closures would not deliver the efficiencies that have been claimed.

'This will make the HMRC less efficient in the future not more.

'We don't accept the findings of the consultation. We think it was a sham, rather as it was for the post office. PCS aren't accepting these locations will close, our campaign will continue and is supported by the local MPs.'

He accused the government of lack of joined-up thinking and said it was 'economic madness' in Devon which has received convergence funding from the EU to create inward investment and jobs at the very time that HMRC was closing offices.

Nationally the union claims that the drive to axe 25,000 jobs and close 200 offices is already leading to backlogs of post and reports that the department can only chase up those who owe £20,000 or more in tax, due to a lack of resources.

Teignbridge MP Richard Younger-Ross has condemned the move, saying that small businesses and the self-employed will be hit.

'The closure of the Newton Abbot and Torquay tax offices will take £1m out of the south Devon economy.

'There has been no independent verification of costs and savings. The government is only interested in a simplistic exercise rather than actually looking at the impact of their decision-making,' he said.

Newton Abbot Chamber of Trade chairman James Bill said: 'We are very disappointed that in these very difficult times the government has decided to take this action.

'It will affect businesses large and small and the entire rural community. We are now faced with discussing our problems with faceless individuals at the end of a telephone. Retailers will suffer from the loss of staff who shop in the town. It's a double blow to the wellbeing of us all.'

An HMRC impact assessment on the closure of Sherborne House, Newton Abbot, suggests that £9.9m will be saved between 2007 and 2012.

It suggests that 42 customer operations staff are relocated to Plymouth and 34 staff are relocated to Exeter. The remaining five staff would continue to provide enquiry centre services either from Sherborne House or alternative accommodation.

Staff now face longer journeys to work. The HMRC report says that 44 staff will be outside the nationally agreed travel-to-work area.

Under a national agreement, HMRC will have to pay travel costs for three years. Mr Bear claims these additional costs have not been taken into account.

A spokesman for HMRC said: 'What we have announced is the last in a series of decisions in HMRC's regional review of office structure.

'Those offices will be vacated on a phased basis with staff moves expected to start in spring 2009.

'So far HMRC has achieved all staff reductions and efficiency targets without compulsory redundancies and it remains our intention to avoid them wherever possible.'