A SALVATION Army hostel is to close because of council demands to modernise the building.

Tom Raine Court, in Darlington, looks after as many as 37 people trying to get back on their feet after time on the streets.

The centre helps to rehabilitate people with drug, alcohol and mental health problems, but the Salvation Army said it would close in March next year when its contract with Darlington Borough Council to house homeless people ends.

A Salvation Army spokesman said the decision was taken because the charity could not afford to provide shower and kitchen facilities in each room, as demanded by the council.

The money the charity receives from the authority would be cut by 44 per cent under any new contract.

Council bosses have defended their stance and said facilities for homeless people in the town needed to be modernised.

Cliff Brown, the council’s director of community services, denied the decision was made to cut costs.

He said the council spent £1.1m providing services for homeless people it was not obliged to by law, and said that amount would not change. He said: “Darlington Borough Council is not saving money with this exercise.

“We have too much hostel accommodation in Darlington and we have inadequate services for couples, families and single females.

Lots of different types of people use hostels and a lot of people are uncomfortable with shared arrangements.

“Salvation Army have been actively involved in the review. We have always had a good relationship with them locally. From a council point of view, we want to have an ongoing dialogue with them. We have four hostels in Darlington and they are all part of the same tender process. We have to decide which ones offer the best prospects.”

The hostel’s manager, Tony Thornton, became an MBE last year for his work over 16 years at Tom Raine Court. Staff at the centre run regular classes to help guests look for work and education, and businessman Duncan Bannatyne recently visited the unit to give a talk.

A Salvation Army spokesman said: “With a heavy heart we have taken this course of action, which will effectively mean the closure of this service at the end of March.”

Accommodation is now being sought for the 37 residents, and 21 staff could lose their jobs.