HMRC has confirmed that India Buildings is to become its new Liverpool centre, bringing 3,500 jobs into the city, as part of its strategy to consolidate local offices into 13 regional supercentres.

Approximately 2,700 of those jobs will be drawn from its current presence in Bootle, just three miles from the the city centre, where the tax authority has three offices.

Its new site, the India Buildings, was built in the 1920s and influenced by New York's architecture, the building once housed the Passport Office but has been largely empty in recent years. However, it contains Holts Arcade, which has architecturally interesting shopfronts and a spectacular ceiling and which up till now has been open for public access.

HMRC has acquired around 270,000 sq ft and will occupy ten floors of India Buildings with staff moving in from 2019.

The department has applied for planning permission to renovate the building, including replacing the windows. The renovations will also mean the arcade is shut off from public use, with turnstiles for staff at both ends.

The Twentieth Century Society, which campaigns to persevere modern architectural heritage, has said it is opposing HMRC's ‘harmful alterations’ to the building and the removal of public access to the retail arcade. Liverpool City Council is due to take a planning decision on the issues later this year.

India Buildings is a listed building and in 2013 was granted Grade II* status, the highest level of protection, which applies to just 5.5% of all buildings on the register.

Jon Thompson, chief executive of HMRC, said: ‘HMRC has a large and long-established presence in Liverpool and the North West, and the new regional centre demonstrates our commitment to Liverpool, the region and its economy.

‘The signing of the lease for India Buildings gives us the opportunity to bring an iconic Liverpool building back to life, while providing staff with the flexible and collaborative working environment that is expected from a modern organisation – making the centre a hub of highly-skilled career opportunities.’

But Bootle MP Peter Dowd told CCH Daily he was 'furious' about the decision, which he said was unnecessary and would cost local taxpayers.

'The new office had to meet a set of criteria relating to transport links, retention of staff and it had to be close to the university. The reality is that Bootle for all intents and purposes ticks all of them, but it was quite clear they [HMRC] had made their mind up come what may.'

He added that he was only discovered the final decision had been made after a call from the local newspaper, the Liverpool Echo.

'I was out all day visiting community centres in my constituency and I received a phone call at around 13.20 from the Liverpool Echo asking me what I thought, then I checked my emails and I had an email from Jon Thompson at 13.22 saying that they had made the decision,' said Dowd. 'I didn't have any warning, briefing or phone call, embargo or anything at all.'

Dowd is shadow chief secretary to the Treasury, meaning the decision fell within his brief.

Mayor of Liverpool, Joe Anderson, said: ‘This is welcome news which will not only deliver an economic boost by increasing the number of workers employed in this part of the city, but also secures the future of one of our most loved buildings. It is a huge vote of confidence from government and another shot in the arm for our ongoing renaissance which is seeing us attract investment not just in new developments but also in regenerating landmark buildings.’