A RURAL support group, whose work during the foot-and-mouth epidemic was praised by Prince Charles, may have to curtail some of its newly-opened facilities because of a funding crisis.

UTASS, Upper Teesdale Agricultural Support Services, expanded into an adjacent property in Horsemarket, Middleton in Teesdale, only last month.

The scheme was undertaken on the back of a promise of £78,000 of European funding, but UTASS project manager Diane Spark said only £16,000 in capital funding had been received.

This means the activities at Kirk Caryn House, which include an internet caf for young people, outreach provision for organisations and expansion of UTASS services, will need to be curbed soon if funding cannot be found elsewhere.

"We were actively encouraged to get projects in, as there were pots of money available," said Ms Spark. "We went through the local partnership and ours got the OK."

But she said the goal posts then appeared to have been moved by Government Office for the North-East, leaving them out on a limb.

"The £16,000 was used to set up Kirk Caryn House," she said.

"But the trustees of UTASS are funding its running costs from reserves at the moment, and that can't go on. The £62,000 would have covered those costs until 2008.

"We're reviewing the situation on a monthly basis, but it's fair to say the house is existing on a hand-to-mouth basis at the moment," she added. "But I'm hoping to submit three big bids elsewhere before the end of the month."

Ann Johnstone, regeneration officer at Teesdale District Council, agreed there had been a lot of pressure on the Teesdale Priority 4 Targeted Community Package Partnerships to put schemes forward for funding.

"UTASS went ahead and got its application in for the capital part of the project," she said. "But by mid-December, before its bid for revenue funding was submitted, GoNE stopped taking any more projects and closed down the appraisal system, because they had gone over the amount of money for the first half of the programme."

There may be hope for UTASS, in the form of a £34,000 lifeline. But Ms Spark said this involved making two further, separate bids to the core and transitional partnerships, and was by no means guaranteed.

"I will not be leaving it there, and will be taking it up with James Usher, the head of development at Teesdale District Council and GoNE. I have also written to Ann Johnstone," she added.