A NATIONAL animal charity could be forced to cut its welfare services including plans for an animal centre in the region.

Due to recent falls in the stock market and controversial spending decisions, the RSPCA has found itself in financial crisis.

It could jeopardise the charity's plans to build a £3m kennels and visitor centre at Felledge, in Chester Moor, County Durham.

The RSPCA was granted planning permission in January to build Felledge Animal Centre to include 38 kennels, 80 cat pens, and training and education rooms built on land already owned by the RSPCA.

Despite an income of £70m last year, the charity suffered when its investments devalued after September 11 and were again hit by the stock market slump of the last month.

Forward plans have been cancelled and trustees have been sent a document outlining spending cuts which will be finalised at a full council meeting in September.

Ann Grain, RSPCA spokesman, said: "We all need to look at what cuts can be made to make us more efficient.

"The Felledge project will be looked at again to consider the cost."

Although the future of the centre is uncertain Mrs Grain played down speculation that the plans will be dropped. "Just because this project is in the pipeline it doesn't mean that it is going to be the first thing to be stopped," she said.