UNION leaders claimed today that nearly 200 civil service posts could be lost in York and North Yorkshire, following the shock Budget revelation of more than 40,000 job losses across the country.

But local school heads were delighted by Gordon Brown's announcement that they can expect a massive cash injection, in a Budget seen by many as seeking to pave the way for a Labour third term, which also had good news for pensioners.

Tanya Walker, York branch chairman of the Public and Commercial Services Union Department of Work and Pensions (DWP) branch, said she was "mortified" by Mr Brown's announcement that 30,000 jobs would be cut by 2008 from the DWP alone.

A further 10,000 DWP workers will be relocated. She claimed one in five DWP workers could lose their jobs in the region - amounting to nearly 200 people - if the 30,000 losses were rolled out evenly across the department's countrywide workforce.

There are about 450 DWP employees in York, split between sites at Monkgate and Monks Cross, and about a further 500 in North Yorkshire.

"I feel very let down - my heart goes out to our members," she said. "Yet again we face a very uncertain future."

A DWP spokeswoman said it was not yet known where the cuts would fall. Fourteen thousand Inland Revenue and customs staff also face the dole queue after yesterday's budget.

York MP Hugh Bayley, who fought to bring the Pensions Agency to Monks Cross, said: "I understand why staff are concerned and I've spoken to the DWP about their plans today.

"There is no indication yet about whether any of the job losses will be in York."

He said the Budget was good news for children, families and pensioners in York.

Ryedale Tory MP John Greenway believed the jobs axe was unlikely to fall at Monks Cross, as the Government was concentrating on moving posts from London to the regions.

Mr Brown pledged £55,000 in extra cash for primary schools and £180,000 for secondary schools, and that all secondary schools would be refurbished by 2015.

Vanessa Huws-Jones, head of Easingwold Primary School, said: "I understand the money is coming straight to head teachers, meaning I can make it have impact on my children and what we need, rather than sticking to a fixed Government agenda." Hugh Porter, head of Joseph Rowntree School in York, said he would be delighted with additional funding, provided it was given every year.

He said: "That is the kind of figure we would need in a large secondary school like this to help us cope with the budget shortfall we have been experiencing."

Vale of York Tory MP Anne McIntosh claimed Labour planned tax rises if they won a third term in office, calling Mr Brown a "tax junkie".

Updated: 11:19 Thursday, March 18, 2004