Funding cuts to refugee charity

A charity that provides housing for asylum seekers and refugees which is at the centre of a financial inquiry has had its funding cancelled.

Astonbrook Housing Association in Birmingham received up to £10m of government funding to provide housing.

The government said the funding was cancelled because the level of the charity's service was falling.

A charity spokesman said the charity may have been inefficient but it had not done anything illegal.

We are delivering and we will continue to deliver Spokesman Astonbrook Housing Association

He added the charity would be seeking a meeting with the home secretary, Jacqui Smith, about the cuts.

"We are delivering and we will continue to deliver," he said.

The charity's headquarters were raided last July by police investigating financial irregularities. The inquiry is ongoing.

In a statement, the government said that despite concerns about the managing of the organisation the UK Border Agency had continued to work with Astonbrook.

"No other accommodation provider has been given the level of intensive support but despite this the level of service has continued to fall," it said.