THE RSPCA has confirmed that plans to build an animal welfare centre will be put on ice for a year while it struggles with multi-million pound losses.

The governing council of the charity announced yesterday it was taking drastic action to cut costs after losing £8.8m on the stock market last year and a further £7m this year.

The charity is trying to claw back £12m over the next twelve months by suspending all its capital projects, one of which was a planned major sanctuary for Chester-le-Street, County Dur-ham.

The centre was to have eased pressure from the North-East's only other RSPCA centre, in Great Ayton, near Stokesley, which is consistently full. The charity is said to have already spent thousands of pounds applying for planning permission for the facility and then appealing against the council's decision not to award planning permission. Plans to build the centre on the site of a former school and college at Chester Moor will be reviewed in 12 months time.

A statement from the RSPCA read: "To safeguard the RSPCA's future operations, the society is today announcing steps to reduce expenditure whilst endeavouring to make sure that vital animal welfare services are protected."

Other cut backs involve freezing staff pay for a year, reducing the number of regional press office posts from ten to five and ordering all departments to reduce their budgets to safeguard future operations.

No decision has yet been taken on whether to close any regional headquarters.

Chester-le-Street District Council said it needed more information from the charity before commenting.