ChangeUp looks set to lose £5m a year in funding

Capacitybuilders is planning for a £5m a year cut in funding for the ChangeUp infrastructure programme.

The organisation expects funding levels to fall from £70m, the total allocated for the past two years, to £90m for the three years from 2008. The money available for the national support services, which will replace the hubs, is likely to fall from £8.9m a year to £5.5m a year.

Negotiations with the Cabinet Office continue, but Chris Pond, chair of Capacitybuilders, said: "That is the best information we have, and we have to assume it will be in that ball park."

Last week, Simon Hebditch, chief executive of Capacitybuilders, said he would confirm funding this month.

Capacitybuilders was criticised recently by its formal advisory body for its plans for the national support services. The Infrastructure National Partnership said there were fears that Capacitybuilders was being "ludicrously ambitious".

Capacitybuilders' board will make a final decision on the structure of national support services today.

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