THE IMMINENT closure of Newport's tax office represents a "sad loss" for the city, outraged politicians said.

Newport East MPJessica Morden vowed to appeal the decision by HM Revenue and Customs to close the building in Chepstow Road, where civil servants have worked for 20 years.

The 138 employees working there will be relocated to Llanishen in Cardiff by 2009.

An enquiry office will remain in the city but it is not yet known how many people will work there.

"This is terrible news for the hard-working, dedicated staff at the office," said Ms Morden, one of several politicians who campaigned strongly against the plans.

The staff now face logistical problems of commuting to the outskirts of Cardiff, she said.

Ms Morden plans to ask Jane Kennedy MP, financial secretary to the Treasury, for an explanation of the decision.

She said she will do whatever she can to overturn it.

John Griffiths, Newport East AM, said he is "bitterly disappointed", and said the relocation is inconsistent with previous HMRC policies aimed at bringing work to Newport.

"It is a sad loss for the city, but we will do our utmost to reverse this decision."

Councillor Bob Bright, leader of Newport city council, said: "We are extremely disappointed with the decision. The council has lobbied against this proposal from a very early stage and we have met and supported the staff affected in opposing the plans."

Mary Hay, HMRC director responsible for the programme, said the decisions were the latest to emerge from a nationwide series of reviews "designed to create the future shape of the department".

She added they had consulted widely.

The offices in Llanelli and Pontypridd are also set to close, with 850 civil service job cuts proposed around Wales.