Barnet's two credit unions are likely to get a further year's funding, but must prepare to be self-supporting after that, Barnet Council has said.

Tory councillor Kanti Patel, the council's cabinet member for regeneration, was criticised by Labour councillors for cutting the annual £2,000 grant to the Finchley Credit Union and the Watling and Grahame Park Credit Union which provide cheap loans to people who are often refused by high street banks.

But Mr Patel said the unions must learn to survive on their own. "We would welcome an application for funding from the unions, but after next year, they should be standing on their own feet," he said.

Labour councillor Alan Schneiderman said: "I don't care whether the money the council gives credit unions comes from the grants budget or the regeneration budget. The important thing is that the unions go from strength to strength.

"All this uncertainty has simply meant that the Tories have unnecessarily damaged a community asset."

The council's regeneration budget is to be formally agreed at tonight's council policy conference.

April 8, 2003 11:30