THE leader of a help group for drug users and the homeless which has been heralded as a blueprint for the rest of the country today spoke of his dismay after his funding was halted.

Father Jim McCartney, who runs the project, said the news was a major blow which would have a detrimental effect on those who rely on the group's help. He warned he would lose at least one of his project workers.

Today Blackburn MP Jack Straw, who has previously said every town in the country should follow the THOMAS example, said he would investigate the matter. But Blackburn with Darwen Council, which allocated the cash, said the pot of government cash it came from had run out for the year.

THOMAS (Those on the Margins of Society) was set up six years ago to help drug users and the "socially excluded."

From its base at St Anne's House in Blackburn town centre, Fr McCartney and his team have helped people get back on their feet. As well as a drug rehabilitation project the centre has a mentoring service, a drama club and provides meals twice a week. It also has its own national magazine produced in Blackburn.

The government's Social Exclusion Unit, which is to provide policy advice to Prime Minister Tony Blair, is due to present a briefing document to the government about the scheme's success, using it as a good example of how to tackle the problems.

Fr McCartney said he had asked for £75,000 for the year because the scheme was growing so much -- an increase on the £45,000 he got last year -- but received only £37,500 for a six month period.

The council said the money came from a pot dedicated to crime-related projects within the council's Single Regeneration Budget (SRB)-- which has since ran out.

Steve Hoyle, acting director for regeneration, said: "This project has received more than £80,000 in the last 18 months from this source. The council recognises the value of the project and officers are meeting with Fr McCartney to support and assist him to investigate other funding sources which may be available."

Although there may be funds left in some of the other seven pots within SRB, such as health or training, it is understood only money from the crime budget could be allocated to THOMAS.

Fr McCartney said: "THOMAS is picking up people from the prison gates and helping the most excluded drug users in the community to overcome their difficulties and build new lives. We are also making Blackburn a safer place.

"At a national level we have the government praising our work and locally we are facing difficulties due to lack of funding. THOMAS already exists with a tremendous amount of donations from the people of Blackburn and Darwen. I feel the local authority also needs to play its part."

As well as the SRB funding Fr McCartney relies on money from the European Social Fund and donations from the public to meet the £120,000 annual costs.