AMBITIOUS plans to upgrade and improve a museum in Earby's most historic building have suffered a major setback.

The Museum of Yorkshire Dales Lead Mining, housed in the Old Grammar School on School Lane, is run by a small but dedicated team of volunteers. They hoped to instigate big changes that would attract more visitors to the museum, including restoring the building's second floor.

Some work has already been done, including providing a tearoom, improving access and putting in a telephone. But the volunteers needed substantial funding for the major work they hoped to carry out - work which would also repair and preserve the grade two listed building, founded as a school in 1591.

They pinned their hopes on a grant from English Heritage - the body dedicated to protecting and preserving England's historically important buildings and monuments. Initially they were given strong indications that the money would come through, then that it would be a reduced sum, and now that there would be no money at all in the foreseeable future.

It was hoped a grant from English Heritage could bring in "matched funding" from other sources. Pendle Council's West Craven committee set aside £20,000 for the scheme, but as part of a much bigger package with the majority of the funding from elsewhere.

The estimated cost of works to the exterior of the building alone was in the region of £110,000 and it was hoped the English Heritage grant could fund up to 70 per cent of that. But now the museum trustees have been told in a letter from English Heritage that there will be no money at all in the current financial year.

Furthermore, it is unlikely that a fresh application grant would result in an offer from the 2001/2002 budget.

For the trustees it is a disappointing end to a long wait.

One of them, Morris Horsfield, commented: "We are devastated and bewildered at this moment in time as to how or why this has happened. Until recently, indications seemed to be optimistic."

The museum's application to English Heritage was submitted in March 1999. The trustees were not told until September 1999 that all the funding for that year had been allocated, but that they were "top of the pile" for the next financial year.

"We were told that, as the building is a class two listed building, the chances of funding were good," said Mr Horsfield. "But as English Heritage point out, their funding has been cut by £100,000 for the whole of the North West region."

In late June, there was an indication from English Heritage that it was about to make a reduced offer for essential repairs to the building, but the letter dated July 6 said that no money was available.

Now the museum trustees are seeking an urgent meeting with representatives of English Heritage to ask why their bid has failed.

In the meantime, they are trying to remain optimistic, looking for other ways to fund improvements to the museum, founded in 1971.

Councillors on the West Craven committee have also expressed concern about the decision.

Earby councillor Rosemary Carroll said: "It would be a really great shame if the museum moved out of this building because it will just go to rack and ruin."

She added that the Robert Windle Trust, which owned the building, didn't have the money to maintain it.

The committee will seek a report from the museum trustees on their plans in the light of English Heritage's decision.