ONE of Britain's best-known student newspapers - Durham University Palatinate - is facing an uncertain future as a result of a deepening financial crisis.

Durham University Students' Union confirmed to The Northern Echo it is in financial difficulties after spending over-budget for two years in a row. A major spending review is now under way.

As a result, many student activities are threatened by a cut in funding from their union, including the university's award-winning newspaper, Palatinate.

Past editors include BBC presenters Jeremy Vine and George Alagiah, and former editor of The Northern Echo Harold Evans.

Representatives of the union and Palatinate held talks yesterday to try and find ways to secure its future.

Tom Page, president of the union, said tough decisions would have to be made in the coming weeks.

"There will have to be changes. We are in financial difficulties at the moment, and will need to look carefully at where changes can be made," he said. "It hasn't yet been decided what will happen, but we are trying not to spend any more money as we are already over-budget. We can't afford to continue making a loss.

"We are trying to increase advertising in Palatinate, and to raise more income that way. We certainly don't want to set the precedent of being one of the only universities in the country without a newspaper.

"Really it's about controlling costs, and hopefully it will have minimal effect from the student point of view.

"It's not a case of battening down the hatches, but we do have work to do."

Chris Lamb, editor of Palatinate, said he and his team were trying to secure the newspaper's future.

"The publication of the university newspaper is crucial for students and for the university," he said. "Everything possible should be done to make sure the university newspaper has a future, and it will be a disgrace if that is not done."