The Lincoln DVLA centre on Firth Road is planned to close by the end of 2013, putting around 16 jobs at risk.
The city DVLA office is one of 39 regional centres described by Under Secretary of State for Transport Mike Penning as “expensive”.
The regional office carries out administrative functions, such as vehicle inspections, arranging trade plates for garages and transfers of registration marks.
The move to close the 39 regional offices, including Lincoln, could save about £28 million a year, Penning said:
“I expect the DVLA to centralise services at its Swansea offices and to deliver those services electronically and in partnership with others.
“To this end, the DVLA will withdraw from its network of expensive, regionally located offices by the end of 2013.
“As this proposed centralisation of services is expected to have an impact on resources, the DVLA will now consult staff in these offices and the trade unions on the impact of the changes.”
‘Insulting and devastating’
The Public and Commercial Services Union (PCS) slammed the total 1,200 DVLA jobs at risk as “outrageous”.
Last year the union exposed secret discussions about the closures, but DVLA denied the plans and refused to release details under a freedom of information request.
PCS general secretary Mark Serwotka said: “With unemployment and inflation remaining high, these cuts to local communities are outrageous and unnecessary, and will further weaken economies crying out for investment.
“DVLA senior managers have previously denied this is what they were planning, so to announce it just two weeks before Christmas is insulting and devastating for staff.”