A COUNCIL funding committee has defied advice from Westminster in a last-ditch effort to save a Dales youth hostel from closure.

Aysgarth, in Wensleydale, has been included by the Youth Hostel Association (YHA) on a list of ten premises which the charity wants to close, to address financial damage caused by the foot-and-mouth crisis.

However, the backlash from the local community convinced the association to agree a stay of execution in April.

Since then the national YHA board has formed a partnership with North Yorkshire County Council, the Yorkshire Dales National Park, and Richmondshire District Council to find £500,000 to upgrade the building.

Funding from Europe seemed the most promising option until the Government indicated that the hostel should not qualify for grants handed out for regeneration.

Now the funding panel, which is backed by both councils and decides how European money is shared in the area, has agreed to give hostel supporters more time to strengthen their case.

The YHA has warned it will close the hostel if there is no decision by February.

Once the hostel has presented an updated application for funding, members of the Objective 2 funding panel have agreed to hold a special meeting, to ensure a decision is made before the deadline expires.

Councillor John Blackie, who serves on the funding panel as well as Richmondshire District Council and the national park authority, said: "There is still strong support for the hostel in the area and we felt it deserved time to make a better case for funding.

"Despite advice from the Government, we have made this landmark decision to defer a decision to allow Aysgarth's supporters to make a better business case so they can show just how the facilities underpin the local economy.

"We now understand Yorkshire Forward may be willing to offer funding to match the grant from Europe, so I think we could even say the tide appears to be turning in the hostel's favour."