WORKERS at Zurich in Swindon are being told not to worry after the company announced a £35billion relocation to Ireland.

Zurich, one of the world’s biggest insurance companies – which employs 400 staff in Swindon – is planning to move its British life assurance business to Dublin in order to cut its tax bill.

But no Swindon are jobs are likely to be threatened by the move.

Zurich has offices in Swindon and Cheltenham and is in negotiations with the Financial Services Authority.

The confirmation of the move is expected within weeks.

The UK business would effectively become a branch of the central office in Dublin should the plan go ahead but is understood that there would be little change to its operations in Swindon and Cheltenham, and it would still pay UK tax.

Four years ago there were more than 1,600 people working for Zurich in Swindon. But since then the company sold off part of its business to Capita and moved part of its business to Openwork, retaining part of that insurance arm. If the move goes ahead, and there is no reason to suggest that it won’t, it would mean Zurich joins a long list of firms choosing to leave Britain in favour of Ireland’s lighter tax regime.

Corporation tax is just 10 per cent in Ireland, against 28 per cent in Britain.

“It’s the smart move,” said a Swindon financial expert.

“Companies are looking at getting the best deal wherever they can.

“It’s not dissimilar from when companies sent their work abroad to save money.”

Zurich plans to centralise operations in Dublin. It has already moved its car and home insurance business to Ireland where 120 new jobs will be created following another 120 jobs which were created at a new business centre in Wexford.

The Zurich Insurance Group has been engaged in an recruitment drive for its Irish operations in the last two years.

The company – which employs 60,000 people worldwide – said it had considered a number of possible locations, but that Ireland had won because of its participation in the euro single currency, and its highly educated and skilled workforce.

The new positions will bring to 1,100 the number of people employed by the firm in Ireland, about the same number of people who work in Swindon.

“The creation of 240 positions, which will be filled by the end of the year, demonstrates Zurich’s commitment to growth in Ireland and reaffirms the Government's confidence in our ability to recover from recession,” said Batt O’Keeffe, Minister for Enterprise, Trade and Innovation.