DVLA staff in Newcastle were handed an unwelcome early Christmas present as the Government announced plans to close the agencys regional office.
Road ministers claim the proposal which could see the loss of 48 jobs would form part of a centralisation programme designed to help save s28m a year.
But city leaders say it is yet another blow for the region that has been hardest hit by Westminsters programme of cuts.
Coun Nick Forbes, leader of Newcastle City Council, said he was very disappointed by the prospect of cuts at the office, based in Eagle Star House on Regent Farm Road, Gosforth.
He said: Its very unfair on the staff to hear, just two weeks before Christmas, that they could possibly be out of work.
This is yet another example of how government cuts are affecting the North East and I will be contacting the DVLA to see if they might be willing to think again.
Under the plans, all 39 regional offices, which employ 1,213 people, will be shut by the end of 2013, and their work centralised to the agencys head office in Swansea, Wales.
Ministers claim it would ultimately lead to far more ways to access the DVLAs services.
Roads minister, Mike Penning said: This is a major step change which will make dealing with the DVLA easier and quicker for motorists and businesses up and down the country.
Centralising the DVLAs services is the first crucial step towards making more of its transactions available online, allowing people to deal with the DVLA at their chosen time and place.
This will mean quicker turnarounds and meet our customers growing needs.
DVLAs chief executive, Simon Tse, said the proposals, which are open for consultation until March 6 next year, were an attempt to move with the times and modernise the agency.
The DVLA has been serving motorists for over 40 years in one form or another, he said. But times change and customers needs change.
That is why its essential that we move with the times and make the best use of our services and experience to make sure we give the motor industry and the general public a service that is fit for the 21st century.
We want to allow people to carry out their business in a way that suits them and offers the best value for money for the taxpayer.
