"This is a sad day for the town and a sad day for the 350 employees.
"Northallerton depends on public service jobs. When decisions are made beyond our centre there will be impacts on the town.
"The distance people have to travel may have implications. It would take a lot of small businesses to replace 350 jobs."
More top news
AFC Bournemouth have confirmed they have completed the signing of England international striker Jermain Defoe.
Northumbria Police is making changes to the opening times of some of its stations.
A woman jailed over her part in the death of 'vulnerable' Lee Irving has failed in a bid to take her case to the country's top court.