A CINDERFORD youth charity says it will be drastically reducing its services as funding starts to dry up during the credit crunch.

The Cinderford Area Neighbourhood Development Initiative, or CANDI, as it is commonly known, is looking into outstanding funding applications in a hope of rising from the ashes.

In the meantime, the management committee says it has no option but to drastically cut the services offered by the charity.

First for the chop is the Young People's Information Shop and the Young Single Parents Support Group.

The Drop in Centre will be open for only one or two sessions each week, staffed by volunteers.

At the charity's AGM, chair Beryl Evans said she was disappointed that despite an intensive funding appeal, only small amounts of donations had been trickling through.

The funding they are receiving is well below that needed to secure the long term sustainabilitiy of the project, she said.

The charity has been running for 16 years and the committee says the services provided are in greater demand.

Spokesman Sue Fellows said: "We are concerned, but we are feeling postive as well. Candi has provided such a valuable service for such a long time, that I am sure a solution will be found."

The young people kept their fighting spirit, opening the AGM with some well-rehearsed dance routines.