YORK could be in line for a major jobs boost, with the revelation that ministers are considering moving 250 Civil Service posts to the city.

City MP Hugh Bayley disclosed today that the Rural Affairs Minister, Alun Michael, had written to him saying that the posts in the Department for Environment, Food and Rural Affairs (DEFRA) may move to the department's offices in York.

His letter stated: "The options and business merits are currently being evaluated.

"You will be pleased to hear that york-england.com (the city's inward investment organisation) have been extremely helpful in providing us with information and data about York to help with our decision-making."

The move comes after Sir Michael Lyons, director of the Institute of Local Government Studies, recommended in an independent review that 20,000 civil service jobs should be moved from London and the south-east to the rest of the country. His report indicated the potential for massive Government savings if the posts were moved- over £2 billion in 15 years.

Imelda Havers, chief executive of york-england.com, said she was "optimistic" that some Ministry of Defence jobs could also come to the city, adding that it was too early to say when the move might happen.

She said: "More confirmation will start to come out after the (Government's) Spending Review is made public in July.

"We are very keen to attract as many jobs as we can to the area.

"The feedback we've had is that York is a very strong place to move to."

An MoD spokesman said of the talks: "Relocation opportunities were discussed in the light of the Lyons report. Those ongoing contacts will be maintained," he added.

Mr Bayley said he had lobbied Margaret Beckett, Secretary of State for the Environment, pressing her to consider York as part of the proposed job moves, along with other civil service departments.

He said: "I have been pushing hard for more jobs to come to York and I submitted evidence to the Lyons review arguing the city's case.

"When the review was published, I was pleased to see that York was listed as a specially-favoured location.

"Defra already has offices at Foss Islands Road, so there is already infrastructure in place to support the relocation of jobs."

He added: "I want the maximum number of jobs for York people and not for Londoners moving house."

City of York Council leader Steve Galloway welcomed the news, but added that York was bidding to get more than 250 civil service jobs.

Updated: 10:42 Friday, May 28, 2004