The Government has abandoned a £3.3m support fund for community pubs, set up under Labour, before it managed to make a single payment.
The move is part of the Government's continued drive to cut public spending, according to The Sunday Telegraph.
The fund was set up under Labour pubs minister John Healey. The three-year programme would have seen 50 community-owned pubs receive support through the Plunkett Foundation, a lobby group for rural communities.
Peter Couchman, chief executive of the Plunkett Foundation, said the decision was "devastating news".
By Neil Gerrard
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