COMMUNITY groups and sports clubs in York have been warned to expect tougher competition for grant aid after leisure services chiefs voted to press ahead with budget-saving plans.

The warning came from protesters who attended last night's meeting to discuss cutting discretionary rate relief (DRR) by around 50 per cent.

Councillors approved a recommendation to reduce the amount available next year to £35,000. More than 110 groups receive DRR.

Protesters say this represents a four-fold cut in real terms because of lost central government grant support.

Malcolm Johnson, of Dunnington and Grimston Playing Fields Association, said: "This will put the frighteners on three-quarters of the voluntary providers.

"The first they will know is at the end of March when they get a letter saying, 'You owe us such an amount.'"

Mike Newsome, of the Railway Institute, said: "If they save £35,000 it costs the clubs more than £100,000. It is silly putting that on the voluntary clubs."

Earlier, Chris Houseman, secretary of York and District Sports Council, was permitted to address the committee.

He said the proposed cut would save the council £35,000 but cost clubs across York £140,000 in lost government funding.

Investing in voluntary organisations staffed by people who gave their time freely should be the committee's first choice for investment, he said.

"To reduce it by anything would be a pity. I would ask you to reject the proposal to reduce discretionary rate relief by 50 per cent."

Committee chairman Bob Scrase said funds would be awarded on a pro rata basis if the number of groups applying exceeded the amount available. Priority would be given to organisations working with young people and the disabled.

He added: "We will look at the demand on the fund. If there is a case or problem we will come back. We hope the change in criteria will fit with this budget cut."

Increasing demands on the DRR budget has led to it being "seriously overspent," leisure services director Paul Chesmore has said.

The leisure services recommendation now goes forward to the city council's policy and resources committee for approval.

The cut in DRR is part of a package of savings worth £661,000 in the leisure services budget in 1998/999. Council-wide savings plans next year amount to £7.87 million.

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