AN UNPOPULAR scheme to hand out voluntary funding to city groups based on whether they met York Pride or Safer City criteria has been dropped.

But City of York Council leader Steve Galloway denied the change of heart was a "U-turn" insisting that amendments to a policy agreed at an authority meeting were simply "refinements".

Labour leader Dave Merrett strongly attacked, what he said, were "controversial plans to restrict council funding to voluntary groups that worked on street scene and crime issues only".

He claimed the ruling Lib Dem group had proposed abandoning a commitment to support groups which help people on low income, women, ethnic and racial minorities.

At last month's leader and advisory panel council meeting the issue was deferred - and a new report to last night's gathering widened the criteria considering how to provide for 'social inclusion'.

Speaking at the meeting, Colin Stroud, chief executive of York Council for Voluntary Services, said the new recommendations were welcome.

"There was a good deal of concern within the voluntary sector about the proposed changes," he said. "We are grateful that recognition has been taken to some of the concerns we have expressed.

"We are not quite sure what these changes of policy were trying to achieve, however, we would support the officers' recommendations.

Councillors backed those recommendations which introduced revised funding criteria based on social inclusion issues including supporting groups which offered city-wide services, which meet identified needs and which can work alongside agencies.

Coun Merrett said: "To have the two criteria of York Pride and Safer City was clearly a nonsense. I welcome the U-turn."

But Coun Galloway said: "There was no U-turn, just a refinement of the policy."

Before the meeting Coun Merrett said: "The voluntary sector is extremely important to our community, and to meeting social needs that the statutory sector doesn't cover.

"The truth is that it is voluntary groups themselves that best understand what is needed and where their focus should lie."

Updated: 09:42 Wednesday, October 19, 2005