IFTY workers at York-based company CPP are at risk of redundancy in what is the latest economic blow to the city.

The announcement comes in the wake of hundreds of expected job losses at Minster Law and Nestle as well as Imphal Barracks.

And it follows news of a surprise rise in the number of unemployed people claiming benefits in the city – up seven per cent in May, compared with last year.

Under CPP’s plans, the finance insurer will transfer its head office to Leeds. This will not be the first time York has lost a major business to a rival. In March, personal injury giant Minster Law put at risk 300 local jobs with its decision to relocate its business to Wakefield. And in April, Nestle revealed it was looking to cut 166 jobs in York, as production of Blue Riband moves to Poland.

Under long-term proposals to close Imphal Barracks, some 365 civilian jobs are also believed to be at risk. This is a worrying state of affairs. The loss of CPP’s HQ – as with Minster Law – is not only a tragedy for staff who are losing their jobs, but a major setback for York’s economic reputation and the city’s efforts to establish itself as an attractive place to do business.

York Central MP Rachael Maskell is calling on the City of York Council to have a clearer economic strategy in what it can do to safeguard jobs.

It makes it all the more urgent that the city presses on with the ambitious plans to develop York Central.

Under this billion-pound scheme, 7,000 jobs could be created in York, as well as much-needed housing.