RCD facing collapse as council stops funding

Rochdale Centre for Diversity (RCD) is facing closure as Rochdale Borough Council has refused to continue financial support.

All eight members of staff will be made redundant if the closure, which has been “informally confirmed” takes place.

A meeting took place last night (Thursday 23 July) to discuss the future of the organisation, after it emerged that the council is no longer prepared to support them financially.

Mohammed Naeem, Chief Executive of RCD, said there are cashflow problems "way too big to survive" without the council’s help.

He added: “We have a serious financial situation and we have asked the council for help, but they are no longer going to support us, meaning all my staff could be made redundant.

“It has not yet been formally announced that we are to close, but we have to prepare for the possibility.”

“I want to make this as painless as possible for my members of staff and I hope to give them as much notice as possible.”

Councillor Mohammad Sharif, Rochdale Borough Council cabinet member for regeneration, said: ““We have been aware of the financial difficulties faced by RCD for some time.

“Some of those difficulties are the result of problems with funding streams entirely unconnected to the council.

“We have already supported RCD financially by making advance payments of three quarters of their total grant funding for the year.

“It has become clear to us that despite the help, RCD would be unable to provide the agreed services in the future.

"We’re just not prepared to give them more public money when we know that they will be unable to deliver services to an acceptable standard.

“The council will offer support to any staff made redundant to help them find alternative employment or training opportunities – as it does for anyone currently looking for work.

"Council officers are now looking at how the services RCD are contracted to deliver can continue to ensure minimal disruption to local people and I expect the Cabinet to be presented with some options for the future in early September.”