A MOVE to cut the red-tape that stopped local community groups claiming almost £50,000 handouts has been made by Preston City Council.

Council chiefs say the rules on claiming the cash were so tight that just £3,000 has been dished out since the launch of the 'area forum funding' a year ago.

Now the council are hoping to change the system to make it easier for people to get their hands on the cash.

The money can be applied for via one of the city council's five area forum groups.

Councillor Ken Hudson, chairman of the rural area forum, said: "They made it far too difficult.

"Applications went to one department and they had to send it to another -- it was a nightmare. So the scrutiny committee decided to make it more simple, and the cabinet agreed. Now hopefully people will be able to apply for grants to do little local projects."

Each area forum can hand out £10,000 with a maximum of £500 to each community project.

Five groups have already been given money -- including Preston Church Council which needs cash to help the hard of hearing -- and others earmarked

The council are still deciding what to do with the money left over from last year.

Under the old system, any groups wanting to apply for cash -- which can be used for environmental improvement and projects that directly benefit the community -- faced strict rules.

They faced the same red tape as organisations applying for council grants of thousands of pounds and needed a constitution and audited accounts.

So the system is being streamlined, with the power to distribute money being put in the hands of the area forum chairmen, who will just need details of the project and a bank account to put the cash in.

Coun John Collins, chairman of the central area forum, said: "It has to be for community use. It can't be something that the county or borough councils should do."

For information ring 01772 906465.