AN award-winning charity that has spent 25 years working to improve race relations in Scotland is facing the axe because of a cut in council funding.

The Glasgow-based Scottish Asian Action Committee launched what is now known as the annual St Andrew's Day march against racism.

It was instrumental in the creation of charity groups including Positive Action in Housing and cultural events such as the Glasgow Mela.

However, Glasgow City Council plans to cut the group's annual £40,000 grant and the committee has been given weeks to wind down pending the outcome of a review of the project.

The grant represents almost 80% of the charity's annual running costs and the group says it will be forced to close unless it can secure alternative funding.

West End-based SAAC was founded in 1983 as a secular campaigning and information service for the Asian community.

The council says the cut is part of a review of projects funded under the social inclusion budget and argues it is duplicating existing services.

Project leaders say they have a 600-strong client base which continues to grow and more than 1500 people have signed a petition calling on the council to reverse its decision.

Hardial Bhari, chair of the SAAC, said: "The council has shown us a red flag. If we don't secure funding from another source we will have no option but to close.

"We are the only secular organisation in the city, we don't discriminate against cast, creed or colour."

The group, which was presented with a lifetime achievement award last year, will learn its fate at a council meeting on Friday.

Councillor Alex Dingwall said: "SAAC have delivered an invaluable service to the city for over 25 years and are held in high esteem by the Asian community. It is important that we work to find a solution that will enable SAAC to continue to serve our city."

A council spokeswoman said: "A recommendation was made to end our funding for this advice project due to this service being provided by other means in that area of the city and concerns over their ability to conform to standards in advice provision."

She said a further report due in early September would determine the fate of the project.