THE RAF's two command headquarters are to be merged and located on a single site at Strike Command in High Wycombe.
Armed forces minister Adam Ingram made the announcement in the House of Commons on Thursday, ending months of speculation.
The move spells the loss of 500 civilian and 500 military posts across the two sites, as the MOD looks to streamline its services by 2008.
The MoD said it could not confirm how many jobs would be lost at Strike Command. Despite this, David Lidington, MP for Aylesbury, whose constituency includes Walters Ash, said: "I think it's good news. I'm pleased it's staying the RAF presence in Wycombe is an asset.
"People at the base put a great deal into the whole economy and are involved in the local community.
"If the base had closed there would have been a huge financial incentive for the Government to sell land to housing developers."
Buckinghamshire county councillor for Bradenham Paul Rogerson, believes that campaigning during the general election helped to raise awareness about how crucially important the RAF was and is to the people who live in High Wycombe and the surrounding area.
He said: "We are just delighted that their future has been safeguarded.
"The alternative to moving the base out was unthinkable.
"It's good for stability and good for the local economy. Without them, all sorts of shops would not survive."
Mark Malin, landlord of the Golden Cross pub in Naphill, said: "It's obviously good news.
"Any trade that we lose is difficult to recuperate.
"It would leave a big hole if they went."
Defence chiefs claim moving the personnel and training command unit from RAF Innsworth, Gloucestershire, to High Wycombe, will free up £420million over 25 years.
Mr Ingram said: "This programme of modernisation is vital if we are to create a flexible and adaptable RAF, equipped to deal with the challenges of the new world.
"Creating a modern HQ structure is at the very heart of these plans."
The military job losses are part of the 7,500 job cuts announced last July.
Mr Ingram added: "This announcement will cause disappointment.
"We are doing everything possible to mitigate what the impact will be on the staff involved."
RAF High Wycombe has been at the Walters Ash site for 60 years.
It currently employs around 2,000 staff, of which 400 are civilians.
The famous Air Chief Marshal Sir Arthur "Bomber" Harris co-ordinated many allied bombing raids on Germany from the High Wycombe base through -out the Second World War.
The headquarters of Strike Command have been based at the High Wycombe Walters Ash site since 1968.
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