A hospice struggling to cope with the recession is planning to close its nursing home.

The move by St Michael's Hospice in Hastings means the nine elderly long-term residents currently at St Augustine's will have to find a new place to live.

It will also mean redundancies for some of the hospice and nursing home’s 170-strong staff.

The residents are currently housed at the Moreton Centre in Hastings while the hospice building in Upper Maze Hill is redeveloped.

St Michael's has made losses of £520,000 over the last two years and expects to be in the red again next year.

It insists the inpatient, day care and hospice at home services it currently provides will not be affected.