FUNDING cuts and a rent hike of more than 3,500 per cent are being blamed for causing the liquidation of a community group responsible for one of Bradford’s historic buildings.

Eccleshill Community Association has been forced out of business after being faced with a £18,000 funding black hole at the start of this year.

It said that had been caused by the loss of central funding from Bradford Council and a rent hike from £300 a year to £11,000 - a rise of 3,567 per cent.

The association was responsible for the running of the Eccleshill Mechanics Institute, which is used by a range of community groups.

The centre is due to mark its 150th anniversary in 2018 but the celebration is in jeopardy unless a new group can be found to run it.

Last month, the centre’s three paid employees were made redundant in a last ditch cost-saving measure.

Councillor Geoff Reid (Lib Dem, Eccleshill), who was chairman of the ECA board before its liquidation, said: “The ECA has come to an end.

“Towards the end of last year and at the start of this year our rent was increased, so we effectively had to find £18,000 from somewhere. The rent rise from £300 to £11,000 was a big blow.

“Because of this we had to find new ways of working. We had to apply for money through other funding streams buy we sadly ran out of time so we had to opt for voluntary insolvency.

“There is a clear understanding from us and the people who use the Mechanics Institute we do not want it closed and there is no reason we it should be.

“There is a widespread desire to continue using this iconic building as a community hub.”

Cllr Reid said he is confident a plan involving a different sort of management will emerge “in the next couple of weeks”.

Councillor John Pennington, the opposition Conservative group’s culture spokesman, said the Labour-run authority's executive was “unable to see the bigger picture”.

“I understand the Council is strapped for cash, but they are disregarding the value places like the institute have to the community,” he said.

“It is a magnificent building, and community groups deserve better support.”

Cllr Alex Ross-Shaw, the executive member for regeneration, planning and transport, said: “I am sorry to hear that the Eccleshill Community Association has gone into voluntary liquidation.

“Because of greatly reduced Government funding, Bradford Council could no longer continue to provide the subsidies to community associations as we previously did.

“However, we did provide a Community Building Grant to the ECA of £9,863 to assist with the transition, which was the full amount they requested.”