A community project given almost £50 million of taxpayers' money to revive the poorest parts of east Brighton has been criticised for setting up an office in trendy North Laine.

For six months, East Brighton For You (eb4u) workers were based at an office in Jew Street, yards from the city shopping district.

The not-for-profit organisation came under fire last year for spending thousands of pounds on "esoteric" projects, including homeopathy for children and ear acupuncture sessions.

Now the worker who raised the latest question over the way grants are spent is taking eb4u to an industrial tribunal.

Robin Lucas, a project co-ordinator, claims she was sacked because she raised concerns about the company setting up an office outside its east Brighton boundary.

Project managers say the temporary office was used by the computer training team running the ICT Co-ordinator Project (ICP) because there was nowhere suitable in the Bates Estate, Higher Bevendean, Manor Farm, Moulsecoomb, Saunders Park or Whitehawk.

The eb4u agency, which is being given £48.2 million of Government cash over ten years, is overseen by the Chichester Diocesan Housing Association (CDHA).

Ms Lucas, from Brighton, is taking her employer to an industrial tribunal on Monday claiming protection under protected disclosure laws.

Tony Greenstein of the Brighton and Hove Unemployed Workers' Centre will present her case. He said: "This money is meant for regeneration, not for a group of trendies running around coffee bars in Brighton."

Community project development consultant Jill Mercer confirmed the web site project was based in North Laine from March to November last year, paying £46 a week in rent because she could not find anywhere cheaper. The workers have now moved to an office on the Bates Estate.

Graham Maunders, eb4u projects director, said the CDHA would fight the claims.

Friday February 06, 2004