A special Hyndburn cabinet meeting has been called to review the decision to allocate £37,500 to 'Big Society Grants'.
The money has been set aside in the council's budget to support the Government's Big Society Agenda and will go towards not for profit community organisations to support their work across the borough.
Hyndburn Labour party chairman Joan Smith has 'called in' the scrutiny committee meeting after concerns over lack of proper criteria for allocating funding to community groups.
The Resources Overview and Scrutiny Committee will meet at 10am on Monday, which will be followed by the extraordinary cabinet meeting at 11am.
Coun Smith said: “I'm all in favour and support of the Big Society Grants and so is the Labour group but the criteria for how people could apply is very loose.
“You have been told they need to have bank accounts and a constitution and things like that but what we need is more meat on the bones.
“There hasn't been publicity for how grants can be applied for and there should be a proper procedure.
“There's already a committee that deals with funding for external organisations which is the Council's Judical Committee External Funding and we feel it should be administered by them. It makes sense.
“If there is an over-subscription for people asking for money then who will decide? While we agree with the policy we feel it hasn't been properly thought out. It's the devil in detail.
Coun Smith added: “It could promote anxiety and antagonism between community groups if they ask why have others got the money and we haven't.”
Council leader Peter Britcliffe said: “The meeting has been called because Labour have delayed the Big Society Grants. I fail to understand why they have called in the meeting as they have had plenty of opportunity at Cabinet and when we had the budget meeting.
“I think it's simply a delaying tactic. You have people waiting for these grants for different events, some might even be planning things for the Royal Wedding.
“Once the scrutiny committee has met in the morning the cabinet has to look at the recommendations and give them consideration. We will see what we can take on board and what we don't.”
