Supporters of an Oxford homeless project, which is set to close, say it could be saved if the city council agrees to a funding lifeline.

The Salvation Army has withdrawn money for its outreach project in St Giles Church hall, which has been helping rough sleepers in the city for about seven years.

The project is due to finish on March 31, although supporters are urging Oxford City Council to step in and offer half the £120,000 annual running costs in a bid to persuade the Salvation Army to carry on.

Michael Woods, of St Giles Church, made the appeal to the north area committee, which has recommended the council's executive board considers making a grant of £40-60,000 from next year's budget.

But a spokesman for the council said it funded 20 different homeless projects in Oxford and will spend £600,000 in the next year. Applications for those funds closed in October and the council did not receive a proposal from the Salvation Army.

Mr Woods, who led a church appeal which raised £200,000 for facilities for the project, said: "For at least five years now every morning I see a great group of people outside the Salvation Army outreach team office getting help, and if that was to stop, it would be appalling."

He hoped an offer of funding could persuade the Salvation Army to change its mind. Dorian Edwards, of the Salvation Army, said if the council made an approach, it would be considered, but until they received further information, it reluctantly stood by decisions already taken.

In December eight people were found sleeping rough in Oxford during an official count, although figures compiled with assistance from homeless charities revealed 18 people sleeping rough intermittently.

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