A PROPOSED change in the distribution of regeneration money in North Yorkshire could undermine the work of local groups seeking cash injections for their communities, it has been claimed.

A special meeting taking place yesterday afternoon was considering a suggestion that priority areas of the county which already qualify for Objective 2 money from Europe should also receive a share of the North Yorkshire single regeneration budget announced by the Government almost two years ago.

The proposal put to the community development management group, the countywide body overseeing the SRB programme, has upset Hambleton District Council, which has officers working with people in four market towns preparing community investment prospectuses in the hope of winning SRB funding.

Almost all of Hambleton is excluded from the Objective 2 funding area of North Yorkshire and chief executive Peter Simpson has expressed serious concern to Jeremy Walker, his counterpart at the county council, about the proposed change in targeting SRB allocations.

The local group which is preparing a community investment prospectus for the Bedale area, and which held its latest meeting last night, has also expressed its opposition.

When £7.1m of SRB funding for 29 areas of North Yorkshire was announced by Yorkshire Forward in 2000, it was said that farming would get £3.7m and £3.4m would be for community initiatives, with specific reference to market town economies.

One of the changes being considered yesterday, however, was the allocation of SRB funding to priority Objective 2 areas to match European money.

There are 14 district council wards where interest has been expressed in employing community development workers. The wards include Grinton and Upper Swaledale, a severely deprived area where the Two Dales Partnership has already been given £5,500 and is seeking £18,000 over the next two years.

But Mick Jewitt, head of planning policy and economic development at Hambleton, said the authority would strongly resist any change to the method of targeting SRB funds.

"It was not our understanding of SRB funding, which was for areas which get no external help. In our opinion a change would undermine the community investment prospectus process and some of the local commitment which has been shown to it.

"SRB is not the only source of funding, but a potential funding stream could be cut off."

County Coun John Blackie, who represents the Upper Dales, said: "This is not a smash and grab raid on SRB funding."