Defence chiefs were last night accused of dealing a £20m hammer blow to the rural economy in Northumberland by deciding to close RAF Boulmer with the loss of 200 civilian jobs.

Politicians, trade unions and local people reacted with anger and dismay to the announcement that the 60-year link between the base - which employs 600 military personnel and civilian staff - and Alnwick district will be virtually severed by 2012.

Armed Forces Minister Adam Ingram announced in the House of Commons yesterday that, following an RAF Strike Command review, he favours closing RAF Boulmer and transferring its school of fighter control, air control centre and other units to RAF Scampton in Lincolnshire.

About 90 military personnel will remain on search and rescue helicopter duty at the base but even that may go in 2015.

Campaigners have pledged to continue fighting to save RAF Boulmer until a final decision is made in two months' time, claiming the move cannot be justified in either military or economic terms.

However, calls are already being made for the Government to come up with a multi-million pound compensation package to help the economy of the Alnwick area recover from the impact of the loss of the base and its huge spending power.

The decision, which is subject to a 30-day consultation period with trade unions, will result in the loss of 200 civilian jobs to the area. It is anticipated that 50 of the jobs will be relocated to other bases and see more than 500 RAF personnel and their families move from RAF Boulmer between 2009 and 2012.

The only good news from the announcement is that Boulmer's highly-regarded search and rescue helicopter crews - which have been involved in countless rescues and won a number of bravery awards since the 1970s - will remain at the base at least until 2015.

Mr Ingram has rejected pleas from MPs, local councils, emergency services, North-East business leaders and 8,000 signatures on The Journal's Keep Boulmer Flying campaign that the base should be retained at its existing size because of its importance to the Northumberland economy and the communities which surround it.

Last night Berwick MP Alan Beith said the decision could not be justified by any improvement in the effectiveness of the RAF and was based on "highly questionable" figures for alleged savings.

He said it will cost £15m to move the Boulmer facilities to Lincolnshire.

"The minister has already admitted in a letter to me that the figures previously quoted for savings had been overestimated by a massive £3m a year and I have good reason to believe that the financial case has been hugely overstated. About 150 civilian jobs will go and up to £20m a year will be lost to the Northumberland economy. This flies in the face of regional policy and the MOD's declared policy of maintaining a `footprint' throughout the UK.

"The only good news is that the search and rescue helicopters will definitely be staying for many years to come, and that the decision to move the rest of the base will take so long to implement that we still have some time to challenge the decision. I am confident that the Boulmer helicopters will remain until at least the middle of the next decade and for how long after that will depend on what replaces the Sea King helicopter.

"Northumberland has had more than 60 years of close links with the RAF, which has great community backing, and this ill-thought out plan is no way for ministers to treat those who work in and give such strong support to our services."

Recent studies have suggested that RAF Boulmer pumps £18m a year into the local economy, supports another 195 jobs off the site and that a further £1.5m a year is spent on repairs and maintenance and building work carried out by local firms. Last night Alnwick District Council leader Coun John Taylor said: "We were expecting bad news but perhaps not quite of this scale and timing. This is a massive blow to our local economy and we will be joining forces with the county council to press for a major Government compensation package to tackle the impacts of this decision.

"We are told the 202 Squadron helicopters are staying at Boulmer but we have to raise concerns about whether that actually will be the case. The fact is that very little will be left at RAF Boulmer after this rundown and there will be some major ramifications for the area, not least what happens to the facilities which are there now."

Deputy leader Coun Gordon Castle said: "We still do not understand how the figures stack up, given the recent major expansion and investment in the station."

RAF Boulmer is the biggest single employer in the Alnwick and Ashington area and its closure will also have a significant impact on nearby Longhoughton First School where about 75pc of pupils are from RAF families. Northumberland County Council deputy leader Coun Bill Brooks said: "We are bitterly disappointed at today's announcement but we will keep on fighting until the final decision is made."

Last night the Transport and General Workers Union also pledged to fight the estimated 450 civilian job losses involved at RAF Boulmer and three other RAF bases set to be closed or drastically run down following the review - first revealed by The Journal last year.

Peter Allenson, TGWU national secretary for public services, said: "We do not accept the minister's announcement as a done deal on closure. We see it as the start of a consultation process."

Mr Ingram said he was inclined to accept an option from the review which would see units currently based at RAF Brize Norton, RAF Sealand, RAF Boulmer and RAF Neatishead move to RAF Scampton and units currently based at RAF Stafford move to RAF Wittering.

Page 2: Closure will have major impact on village