A group that campaigns for leaseholders faces severe problems because its city council grant has been axed.

The Brighton, Hove and Distict Leaseholders Association is set to lose an annual grant of £1,500 it has received for the last nine years.

The group, which has annual running costs of about £4,000, might have to slash its services if the cut goes ahead.

About 1,400 people a year are given advice every year through surgeries and a telephone helpline.

They include many who have been referred by the council's own housing department.

Shula Rich, who chairs the association, said at the moment everybody who asked for advice over leaseholding problems was being helped.

But this could change, she warned.

She said: "We would have to ask everybody to become members and we would not be able to see everybody who comes.

"I think it is indescribable and astonishing. The whole process of allocation needs to be scrutinised.

"If there is limited money, why not put the needs of poorer people first?"

There has been anger among voluntary groups over how the grants are being distributed.

The three-year council package is worth £2.1 million and starts from next April.

Brighton and Hove Citizens' Advice Bureau faces a £67,000 cut, the Brighton Womens' Centre £6,000, while the Hangleton and Knoll project received nothing.

Arts organisations were the winners. The Fabrica gallery received £33,750 and the Gardner Arts Centre £56,250.

Don Turner, Cabinet councillor for regeneration, said requests for money totalled three times the available cash.

Because of this, difficult decisions needed to be made.

The grant allocations, already agreed by the council's senior policy making committee, will be debated at a full council meeting on Thursday.