Insolvency staff in Hull who saved the economy £2 million and disqualified 20 rogue directors over the past year are to lose their jobs.

The Prospect union said yesterday that the 45 workers at the Insolvency Service’s Hull office were shocked and angry.

The service deals with financial failure and the misconduct of individuals associated with it.

Hull is responsible for about one in 16 of all official receiver disqualification reports.

The investigation of such reports is paid from fee income and does not come from the government.

Prospect branch secretary Yvette Hill said: “The closure is a shock and a disgrace. The expertise of those staff being made redundant will be lost to the organisation.

“Dishonest directors will once again be able to sleep easily in their beds.”