CRYSTAL Palace has lost out on £3.5m of European funding following the demise of plans to build a multiplex cinema on the site.

The cash, which was designated for regeneration surrounding the site when it was awarded in 1997, will go back into a pot of money to be shared between the five boroughs of Lewisham, Lambeth, Croydon, Southwark and Bromley.

The money, from the Single Regeneration Budget, must be used in the next two years for community or business projects, to encourage growth in those areas.

After the legal battles surrounding the site, councillors from all parties felt the money should be returned as it could not be used in the time available.

It is not yet known how much of the cash is likely to come back into the borough.

Council officer for community renewal Jan Shorrock said: "This money has to be used for social or economic regeneration, which could involve training, education or even be put towards reducing crime.

"We have no idea at this stage how much money will or won't come back into the borough.

"But we will be asking businesses and community groups about possible projects for which it can be used.

"As there are only two years remaining in the scheme, the cash will have to be spent by then."

December 10, 2001 18:09