RELIEF cash to help rural businesses recover from the economic blow of foot-and-mouth is set to run out in Richmondshire.

Future applications to the hardship relief fund are likely to be turned down as the district council already faces a £28,000 shortfall in budget.

The authority is also unlikely to be able to extend the scheme until the end of March, as allowed by the government.

The fund was introduced as part of a package from the rural task force to help hard-hit businesses recover from FMD. It was originally due to end in June last year but, following pressure from local authorities and other organisations, the government allowed an extension until December 31 and another until March 31.

By December 24, Richmondshire council had received 206 applications, of which 204 were eligible for help if evidence of financial loss as a direct result of FMD could be demonstrated by the businesses.

A total of 113 businesses provided the necessary evidence and 106 have already been awarded relief at a cost to the council of £8,048 from its original budget of £10,030. Seven applications were unsuccessful.

A report to the council's resources urgency sub-committee yesterday said the cost of outstanding applications and an extension of the scheme to March would leave the authority with a £28,000 shortfall.

Under government guidelines, the council decides whether to grant hardship relief and, once the budget is spent, the authority may turn down outstanding applications.

Firms shortlisted

ELEVEN firms have been shortlisted for a £70m contract to build living and working accommodation for 600 service personnel at Catterick Garrison.

Defence estates announced on Tuesday that the companies would be invited to "pre-qualify" for the work, having been selected from those which expressed an interest in the project.

Invitations to tender will follow and the contract is expected to be awarded late in 2003.