Funding threat to £5m youth centre plan

THE recession could affect Oldham Council’s support for the planned £5 million town centre youth centre.

The centre, which is backed by leading businesses in Oldham and was kickstarted by a grant from philanthropist Norman Stoller, has secured a £5 million Lottery grant.

It will be built on the site of the Marjorie Lees Health Centre in Horsedge Street and run by Onside Northwest, a charity led by business leaders, including some from Oldham.

Oldham Council and its partners agreed in 2007 to fund 40 per cent of the running costs.

But since then, local government finances have been hit by the recession, with the council budgeting to save £45 million over the next three years.

Tonight, councillors on the Cabinet will consider what support it can give from 2011 onwards, after the centre opens.

Running costs will be split between private, public and charitable organisations, but councillors will hear that negotiations are still taking place with Onside.

Any agreement would be drafted to include a clause to allow for any future cuts in Government funds to local councils.

Councillors will be recommending that part of the council’s area based grant from central Government is used for the first two years, which may lead to cuts in other services.

Talks with Onside will continue and the running costs and contributions will be reviewed every year.

Projected public sector contributions are over £300,000 every year from 2001 to 2015.

Councillor Kay Knox, cabinet member for children, young people and families, said: “We desperately want to support this in principle, but we don’t want to tie ourselves into a contract that is unrealistic. We want to know by 2011 what the funding is from Government before Oldham commits.”