GOVERNMENT funding cuts could threaten the future of a York project which helps people back into work.

Regional development agency Yorkshire Forward needs to cut its spending by £45 million this year, which has forced the withdrawal of proposed grants for schemes at York Minster and the National Railway Museum.

City of York Council will today be told the reductions could affect prospects for the authority’s One City programme, which aims to tackle unemployment and match those looking for work with suitable employers as well as offering business and budgeting advice.

A report going before the economic and city development overview and scrutiny committee says a £200,000 One City project is “at risk”, although it could be incorporated into a joint approach to dealing with joblessness by the Leeds City Region.

Council leader Andrew Waller said: “I am determined the One City programme will be rolled out from the success of the Kingsway West Project in Westfield as it is a key policy of the council.

“The Kingsway Project actually had quite modest funding, so by looking for alternative sources of money from other regional and European funds, we can assist the Future Prospects service and other partners to help people back into work and training, as well as tackling social inclusion in general.”

The report by Roger Ranson, the council’s assistant director for economic development and partnerships, said York has made joining a Local Enterprise Partnership (LEP) with Leeds City Region members its top priority, but has also joined an outline bid for a similar York and North Yorkshire alliance.

LEPs are designed to replace regional development agencies, but Labour group leader Coun James Alexander said: “I am a full supporter of the Leeds City Region LEP, but I see no economic benefit to York in entering an LEP with North Yorkshire.

“This is being done for political reasons and it is distracting for York’s economic planning and a waste of time.”