THE Salvation Army has blamed its decision to close a homeless hostel in Darlington on a 44 per cent cut in the charity's budget.

A spokesman said it had taken the decision over Tom Raine Court in Coburg Street with a "heavy heart".

The 37-bed hostel, which employs 21 staff, and receives an average of 2,000 homeless referrals each year, is due to close at the end of March next year.

A spokesman said: "It is with deep sadness and regret that we have made the difficult decision not to tender for the new homelessness services contract in Darlington.

"We are very sad to lose what is considered a Grade A service for homeless people and a flagship service for The Salvation Army in the UK.

"The current 37 residents and our dedicated staff team remain our prime concern."

He added that the Salvation Army will do all it can to work with Darlington Borough Council to ensure the occupants are found alternative accommodation and support.

"As a church and charity, we have been honoured and proud to serve the people of Darlington since 1879 and will continue to consider how we can best serve them in the future," he added.

The hostel is run by Darlington-born Tony Thornton, who was awarded an MBE in 2008 in honour of his 16 years helping people less fortunate in the town.

Tom Raine Court is owned by The Salvation Army Housing Association and provides direct access accommodation for mean over the age of 18.