More than 40 voluntary groups in Dudley and Stourbridge have had their grants axed due to a £2 million overspend by Dudley Council.

A total of 43 groups in the borough – the majority being youth organisations such as the scouts – have been told that the funding is not available this year.

A pot of £31,000 has been cut after the council admitted it had to meet a £2 million deficit in social care for children who have been placed out of the borough.

The groups rely on the small grants for specific things they may need and will now have to look at alternative sources of funding.

Julie Duffy, who runs Stourbridge’s What? Centre, which gives advice and counselling to young people, said the centre faced uncertainty every year and any loss of funds would make it worse.

She said: “A lot of small voluntary groups need this money for specific things. A lot of them do not even have paid staff and to a small group this is a lot of money.”

The council confirmed today that the What? Centre would get its funding this year, but others will suffer.

John Freeman, director of children’s services, said: “Children’s social care was showing a £2m overspend.

“This was due to both an increase in the number of children requiring placements outside of the borough and a very significant increase in the costs of those placements.

“I am required to balance the overall budget and to do so, it is with regret I have had to suspend the payment of a number of grants to voluntary organisations.

“I regret the need for this, but the council cannot allocate money beyond its approved budget.”

Stourbridge MP Lynda Waltho today called for continued funding for the Government’s Youth Opportunity Fund and Youth Capital Fund, which give money directly to young people to spend in their community.

By Rebecca Jones