THE leader of a youth theatre group says art projects may suffer because of a major management restructure at Teesdale District Council.

The re-organisation, which will save £116,000, will see a cut in the number of senior management posts from nine to seven.

But there will be an increase in staff in departments such as environmental health, customer services and housing strategy.

The council will lose its arts development officer, with applications going through the grants sub-committee.

The council has pledged to support the arts in Teesdale through its agreement, which ends next March.

However, Jill Cole, director of the Turrets youth theatre group, said new arts projects in the dale may not realise their potential.

"I'm relieved that the council has found a budget for the arts. That's better than we'd hoped," said Ms Cole.

"I still feel that it's a regressive step not to have anybody in an arts post and it will affect arts development in the area.

"The money is there but it means that it will be very difficult for anything new to happen in the area."

Richard Betton, leader of the council, said, "When the chief executive came into post, he knew he had to save £84,000 through a management restructure.

"We are putting into place a restructure which has delivered savings of £116,000 and allowed us to remain committed to community arts groups.

"The new roles undertaken by senior managers will allow us to focus our efforts.

"Like any business, we have to balance the books but as a council we have to make sure our money delivers the services our communities want and need.

"This new structure and the recent budget setting exercise places a great deal of emphasis on community focus with new front line jobs and a further investment of more than £120,000."

Susan Reay will take over as executive director of services and deputy chief executive, responsible for ensuring all services are delivered.

Former head of planning and building control Trevor Watson will become director of regeneration, responsible for planning, economic development and housing strategy.

The new structure can be seen in full at www.teesdale.gov.uk.