THE future of a long-established playgroup is still hanging in the balance after church leaders announced plans to sell off a community hall.

A major restoration of the 120-year-old Church of St James, in Romanby, near Northallerton, is expected to go ahead shortly.

But the project will have to be financed by the sale of the nearby church hall, a nineteenth-century building and the former village primary school.

The hall - which is used by a variety of community groups, including Romanby pre-school - has fallen into disrepair in recent years and Northallerton parochial church council is drawing up a planning application for residential development of the site.

If that is granted, it would be sold off. The playgroup, which provides activities for dozens of youngsters each week, is now pinning its hopes on gaining planning permission for a building to be erected in the grounds of Romanby primary school.

A spokeswoman said: "The education authority has written to the Secretary of State about this and we are awaiting a reply to see if we can put a Portakabin in the school grounds. But if we don't get that we'll still be without a building."

Last year it was announced that the former St James' playgroup would be changing its name to Romanby pre-school as it was hoping to stay in the village, despite its uncertain future.

If it successful with its bid to re-locate to the primary school, the group would probably be seeking a Lottery grant to finance the move.

The church will undergo a major revamp - if permission is granted by Hambleton District Council - including the provision of a meeting area, kitchen and toilets and improved access for disabled people.

John Hutchinson, of the church council, said: "We have been thinking about this and planning it for about two-and-a-half years."

Of the situation facing the playgroup, he said: "They have been kept informed from the start about what we have been intending to do and what the repercussions might be."