PLANS are being drawn up for a painless end to City Challenge when the £37 million budget runs out in 1998. Funding for the government sponsored scheme to transform Halliwell comes to an end in 18 months time. But management believe they have to act now to ensure jobs and carefully nurtured projects do not simply disappear.

Now all the 85 projects are being examined and ranked to see if they will be saved or closed down.

It is hoped funding will be available from other agencies for a number of important or joint projects.

But many others funded entirely by City Challenge, such as the much praised Crossover youth scheme, are in danger of going to the wall or surviving in a watered down form.

By September 1997 a detailed plan will be drawn-up for either shutting or continuing each of the projects.

The council and other partners have been asked to absorb jobs when City Challenge comes to an end.

But Chief Executive Brian Collinge warned councillors that they must give priority to council workers seconded to City Challenge or forced to move jobs in the next wave of budget cuts.

He told the policy sub committee: "We would want to be sympathetic and take advantage of the skills that have been developed but our main concern must be the absorption of our own staff."

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