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The Tories sneaked out a plan to move 228 jobs in the 'Northern Powerhouse' department from Sheffield to London today, on the last day before Parliament breaks for recess.

And the department today suggested staff who want to keep their jobs could commute the two-hour each way journey from the North to the capital.

As Tory Sajid Javid was setting out plans to save the steel industry in the House of Commons this morning, his department was quietly slashing jobs in the Steel City of Sheffield.

The plan, described as "madness" by Nick Clegg, will see the Department for Business Innovation and Skills' (BIS) Sheffield office shuttered in 2018.

BIS have offered to part-subsidise travel costs for any staff who want to commute from Sheffield to the capital for three years.

(Image: Google)

BIS insists the 'consolidation' is part of a wider plan to 'modernise' the department, which will save £350m by 2020.

But a leaked BIS document, seen by the Mirror last month , reveals moving all of the jobs to London will cost the taxpayer an additional £100,000 a year.

A senior civil servant initially denied a specific cost assessment of closing the Sheffield base had been carried out. But he was forced to own up after Sheffield Central Labour MP Paul Blomfield revealed details of the study in the House of Commons.

Mr Blomfield, who sits on the BIS Select Committee, today said the decision, and the "phoney consultation" that led to it, fatally undermine the Government's claims for the Northern Powerhouse.

He said: "The decision announced today is disgraceful. It has been clear from the outset that centralising the Department’s policy functions in the most expensive city in the country makes no financial sense.

"It also goes against the Government’s own aim of moving civil servants out of the capital. We won the argument with the backing of MPs from all parties and across the country, and the House of Commons called for an inquiry."

“I am deeply disappointed that Ministers have allowed themselves to be bounced into a decision that runs counter to Government policy and will cost the taxpayer.

"I am confident that when the National Audit Office publish their report into this there will be some red faces. This is a shocking indictment of the Government’s approach to running the country and another kick in the teeth for the so-called northern powerhouse.”

Sheffield Heeley MP Louise Haigh added: "The decision to move Sheffielders jobs to London is a desperate symbol of the Tories contempt for our city.

"They cannot be trusted to build a Northern Powerhouse and put our area on equal footing with the wealthy south-east after this despicable decision to lay off powerful Sheffield civil servants who could have been the eyes and ears of a Northern revival."

In a statement, BIS permanent secretary Martin Donnelly said: "We have decided that all staff will be able to stay in their current role and location until January 2018. After that, anyone who wants a role in London will be able to have one, with assistance towards the cost of travel for the first 3 years."

Staff will be allowed to claim up to £6,500 a year for up to three years against the cost of travel between Sheffield and London.

But they will not be allowed to claim for overnight accommodation in London.

The cheapest standard class rail ticket from Sheffield to London costs £9,840 a year. The journey takes between two and three hours each way.

The £100,000 a year increase in cost for moving the jobs to London includes a £3,500-a-year increase in pay for staff, but doesn't include the maximum £6,500 a year cost of subsidising travel for those wishing to commute.