A wealthy private members club has shocked staff and residents by starting redundancy consultations with staff - despite planning a swanky £24m redevelopment.

The surprise announcement comes just months after the Royal Automobile Club (RAC) filed plans to create a luxury spa, a motoring heritage wing, a golf driving range, plus a new children's area including a swimming pool at its site in Woodcote Park, Epsom.

Now it is looking at making nine redundancies at the country club with another 12 at its clubhouse in Pall Mall, central London.

An employee at the club, who asked to remain anonymous, said staff members were shocked by the announcement as many of them had worked there for decades.

He said: "It will ruin nine people’s lives. How can they request a £20m master plan and save money on employment?"

Michael Bedingfield, head of marketing at Woodcote Park, told the Epsom Guardian yesterday: "We have embarked on a restructuring that may result in a small number of redundancies.

"At this stage there may be a reduction of up to nine positions of over 200 appointments at Woodcote Park."

In a letter to staff, the club said it needs to create a "more efficient structure" and make cost-savings to deliver high standards to members and maintain competitive pay and benefits for employees.

It said: "It not an exercise in simply looking to increase profits, but rather we need to protect our revenues for the benefit of all."

But Mr Bedingfield denied that the restructuring was to "save money" and said: "It’s to improve members services."

When asked about rumours that some redundancies could be made in the golf area, the 19 Hole bar and kitchen, he said: "We’re not that far into the process yet."

A consultation with staff is underway at the club and those selected for redundancy may be considered for alternative vacancies at the club.

Councillor Liz Frost, who represents Woodcote ward on Epsom Council, said: "It seems a little strange.

"Obviously if there are going to be redundancies and loss of jobs in Epsom I’m very concerned about that.

"Although the economy is picking up and hopefully there will be more jobs around, it could have quite an impact on people in this area.

"I’m surprised because if they want to redevelop the site then by implication you would be expecting there to be more employment in this area."

Conservative County Councillor Tina Mountain, who lives in the Ridge, said the proposed redundancies were "inexplicable" especially given the fact the club has already spent large sums on refurbishing the bar.

Coun Mountain said: "I'm shocked to be quite honest. I can't understand why as a private members' club they are making people redundant if they are trying to expand."

The club has also asked for permission to build two homes on greenbelt land it owns on the Ridge, claiming it needs the money to restore a Grade II listed wall and gardeners’ cottage.

Coun Mountain is among those who have campaigned against plans to build on this protected land in the Ridge and criticised the club for not maintaining the wall and cottage.

The planning application is due to be heard by Epsom Council's planning committee on March 12.

Mr Bedingfield said: "We look forward to the planning permission being granted and there is the potential to create more employment at Woodcote Park in the longer term, when the master plan is implemented."

See the plans, with references 14/00562/FUL and 14/00561/OUT, at www.epsom-ewell.gov.uk