WORK has been delayed on a vital £750,000 hospice as the credit crunch bites in the North-East.

Builders were expected to start work next month on the two-storey building at Butterwick Hospice, in Stockton.

But plans have been put on hold after organisers revealed donations have slowed down, leaving them with less than half the required funds.

Jackie Leighton, of Butterwick Hospice, said: "It is a bit of a hard slog at the moment. It is a bit of a problem as we have only got somewhere between a third and a half of the total amount we need so we are not going to start building next month.

"Raising money is difficult at the best of times but it is even harder at the moment with the current economic situation."

In January, The Northern Echo and Butterwick Hospice launched the Put Your Foot In It campaign, which called on businesses and individuals to help raise the cash for the new premises.

When completed, the hospice will be able to offer more care to patients and their families.

The building will stretch across 5,400sq ft over two floors, providing more counselling rooms for adults and a play area for children.

More individual therapy rooms will be created, along with a large area for group therapy sessions.

The larger area will also double as an education room to enable hospice staff to share their expertise with other care providers.

Despite the current problems Mrs Leighton said they will continue with their fundraising until they reach the total.

She said: "I think we will just carry on. We are still getting money coming in and we have a lot of events planed to raise money.

"We are also waiting to hear on some bids we have submitted for grants. If we get them we can make a start on work, so fingers crossed.

She added: "The new building will make a huge impact on what we can provide so it is really important we raise all the money."

The campaign asks individuals and companies to pay for a square foot of space in the new building. That square foot will carry the name of the person or business that sponsored it and a roll of honour will be listed on the Put Your Foot In It website.

The list will also be put in the new building's reception.

To support the campaign, visit putyourfootinit.org.uk The cost of each square foot has been reduced to £20.

Donations can be made securely online or by calling 01642-607742.