A COMMUNITY centre that fought for survival after Durham County Council stopped its funding is to close.

The Shildon Centre will shut its doors on May 31, only two months after gaining independence from the council.

Staff and volunteers at the centre in Main Street formed a management committee and registered as a charity after the county council announced budget cuts last year.

They had banked on receiving Lottery grants totalling £440,000 for two projects, offering welfare and enterprise services, which would have helped safeguard the venue's future.

But last week, they heard that the first application had been unsuccessful and after crisis talks on Friday, the committee decided to close.

Vice-chairman Nick Biggs said: "We feel absolutely gutted. We tried really hard to keep going, but unfortunately we couldn't without the first grant.

"Durham County Council didn't give us enough time to get established and run ourselves independently.

"A lot of people in the Shildon area, especially vulnerable people and community groups, will miss us.

"In time, this will have a great effect on the town."

The centre was set up in 1985 in a former police station to support people who lost their job when the town's wagon works closed.

It provides a community transport scheme, counselling and administration services, a cafe and accommodation for 11 community groups.

Mr Biggs said smaller grants offered to the group would be turned down and a decision had not been made about the outstanding Lottery application.

Three members of staff will be made redundant.

Gerald Tompkins, of Durham County Council's adult and community services, said the authority was forced to withdraw funding as part of a £14m cost-cutting scheme.

He said the council gave 12 months' notice and extended funding by two months to give the trust time to examine other ways of operating.

It also advised members on the transition and grant applications.

Mr Tompkins said: "We share the centre's disappointment that our joint efforts have not succeeded in persuading other funders to support the project."