THE first source of funding for Hereford's troubled City of Living Crafts scheme has been switched off until at least 2005.

Advantage West Midlands (AWM) confirmed this week that its partner, the Rural Regeneration Zone, decided Living Crafts did not meet the criteria required for cash support.

That leaves Living Crafts - with an initial completion date of 2006 - in limbo for at least two more years unless alternative funds are found.

And the RRZ has said that it will work with parties still supporting the multi-million-pound facelift for Hereford's High Town, Castle Green and Cathedral Close to find alternative funding.

Living Crafts was supposed to have started this year. But last week the Hereford Times revealed that a combination of personal changes within Hereford City Partnership - the scheme's steering group - and changed rules on regional funding, had meant delay.

Any funding commitment from AWM ended with the project feasibility study and masterplan. Other cash would come from the Rural Regeneration Zone, said AWM spokesman Neil Skitt.

Hereford City Partnership says it no longer has the 'resources' to run city centre management and City of Living Crafts.

Instead the partnership will play a 'consultation' role as - or if - the project is pursued.

Herefordshire Council says that it is currently still committed to Living Crafts as a strategy and would seek alternative funding to boost the 'tens of thousands' of its own money it could make available.

The council acknowledges that any implementation of the scheme does depend on outside funding.

Launched in 2001, Living Crafts was intended as a much-needed makeover of Hereford city centre on a heritage theme, building on the extensive network of crafts people working within the area.

The three-year programme should have started last April with work on lighting schemes, signage and a Wyeside walk among other initiatives.

Work was to have continued until 2006.