Up to 38,000 staff from HM Revenue and Customs (HMRC) will be expected to move large distances as part of a reorganisation, a report has found.
Some may need to relocate by up to 174 miles if they want to keep their jobs, the National Audit Office (NAO) said.
The changes are part of long-term plans by HMRC to replace 170 offices across the UK with 13 large regional centres.
HMRC said the plan would eventually save the taxpayer £83m a year, and help it provide a better service.
Nevertheless the NAO said that the tax authority had already recognised that its original plans were unrealistic, and HMRC was considering changing them.
"The changes HMRC is considering will inevitably increase uncertainty among some of its employees, and have the potential to harm its relationship with them," the NAO report said.
The cost of the new buildings involved had also escalated by £600m since the plan was first proposed in 2015, the report said.
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