ONLY weeks after it was approved, a youth centre project has lost almost half its funding because of public sector cutbacks.

The saga of the contentious plan for a youth facility on the Holding Field in Kingsclere is set to continue as a Government grant of £275,000 towards the £624,000 cost of the project, has been withdrawn.

Project organisers are currently negotiating with Hampshire County Council to try and secure some additional funds to make up for the loss of the Government-funded PVI (private, voluntary and independent) grant.

The building project, which was finally granted planning permission on September 2, is for a site in Ashford Hill Road, Kingsclere. It comprises a youth centre, sports facilities and a permanent home for Busy Bees Pre-school.

Keith Chapman, county councillor for Calleva and Kingsclere, said: “Hampshire County Council is trying to see if there is other money available that could be used to help Busy Bees and the Kingsclere scheme. The county council is really supportive and every effort is being made to help make up the shortfall.”

Maria Meredith, Busy Bees’ manager, said: “We prepared ourselves when the new coalition government came in that there were going to be some claw-backs. We have applied for two separate grants equating to £200,000 which we should hear back from by the beginning of October.

“There was always going to be a plan B. We can build within the planning application but scale it down. At the moment, we have got our complete wish list in there. What we won’t do is start building until we have the money. We won’t end up with a building site.”

She added that she is still optimistic that building work will start before the end of the year.

Councillor Peter Goff, chairman of Kingsclere Parish Council, said: “For plan B the building itself would be the same but the interior would use just part of it. They have got the cost down to about £400,000. This would be phase one and when they get more funding they can do the rest. It’s still all systems go.”

The row about the building led to two parish councillor resignations and a village poll. It is on the agenda for the next Kingsclere Parish Council meeting on Monday.