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Borderline, the charity which supports Scots facing homelessness in London (and a longtime stockist of our sister edition), receives around half of its total income from the Scottish Government, but bosses fear that its future is now at risk after its grant was more than halved to £49,184 for 2010/11.
Willie Docherty, Chief Executive at Borderline, said: "There is an increasing demand for our service, particularly during the recession when people are out of work and they need our help to get them back on an even keel. A cut of 55 per cent puts our service in jeopardy."
The charity, which is due to celebrate its 20th anniversary next year, offers advice and support to people with a range of needs, from those fleeing domestic abuse to former members of the armed forces.
Workers at the charity help find accommodation for those in need and offer grants to help people get back into training or employment. The latest figures, for 2006/07, show that Borderline assisted two people to relocate back to Scotland every month.
The charity is the only project operating outside Scotland to receive funding as part of the £2.4 million Housing Voluntary Grant Scheme, awarded to 29 projects across Scotland this year.
Mr Docherty said it had already been forced to cut costs at Borderline by 30 to 40per cent last year, and the charity had approached Government officials with an alternative proposal to reduce funding over three years to help ensure its future.