VITAL community services could be forced to close when the effects of a £50m funding cut to the region's voluntary sector comes into force next year, conference delegates were told.

Changes in the way European and central government grants are issued are due to come into force in 2006 - leaving a funding black hole.

The Invest 2006 Campaign held a fringe meeting in The Baltic Arts Centre to discuss the future role of the voluntary sector in social and economic regeneration.

George Hepburn, chief executive of the Community Foundation, which funds the campaign, said: "We are calling upon Government and One NorthEast to recognise the essential role of the voluntary and community sector in social and economic regeneration of this region."

Among the projects likely to be affected is Gateshead-based Renew, which provides job training to help people, including ex-offenders, back into work.

The project - which in the past three years has helped 56 people back into permanent work and another 27 into further education, faces a 30 per cent funding cut when the changes take effect.