THE prospect of 250 civil service jobs for York came a step closer with Gordon Brown's Government spending announcement.

Mr Brown's confirmation that 250 civil service jobs would shift from London to Yorkshire was today hailed as "positive news" by city MPs.

Hugh Bayley and John Greenway said York was a front-runner for the Department for the Environment, Food and Rural Affairs (Defra) jobs.

The Chancellor's announcement came two weeks after the Government revealed it was shutting York Pensions Centre at Monk's Cross with the loss of 313 jobs.

The city is also in a strong position to pick up the new jobs because Defra already has offices at Sand Hutton and Foss Islands Road, York.

In a letter to Mr Bayley in May, Rural Affairs Minister Alun Michael claimed his department was considering moving 250 jobs to York.

Mr Brown broke the news yesterday during his annual Comprehensive Spending Review, which sets out budgets for each Government department.

Outlining ambitious plans to relocate 20,000 civil service jobs out of the south-east to the regions, he said: "I can already announce the first sites for location include 250 posts from the Department of Rural Affairs to Yorkshire."

He said: "I can also announce that for all departments making future job decisions, our policy will be a presumption in favour of location in the regions."

Officials at Defra said no final decision would be taken on the relocation until next spring.

But Mr Bayley, the MP for York, said: "This is a very positive sign. In view of the Pensions Centre jobs losses, I want the Government to confirm that the Defra jobs will come to York and not elsewhere in the county."

Updated: 12:59 Tuesday, July 13, 2004