A WEEK after it was refused a £2 million lottery grant, Farnham Maltings is facing up to how it will fund its massive refurbishment project.

The cash, which counted for more than half of the proposed £3.95 million improvement package, would have paid for much-needed repairs and provided extra facilities, increasing arts and community provision in the area.

Waverley council had pledged a lump sum of £1 million to the project - with annual contributions of £80,000 - if the venue was successful in securing the lottery money.

Even Farnham Town Council, with its limited resources, had offered £100,000 in aid should the Maltings bid be accepted by the Arts Council of England.

Chief executive of the Maltings, Joanna Ridout, told The Herald this week that a new strategy for raising the money was being formulated.

But she refused to say what this strategy was, emphasising that she was in no position to predict what form a salvage plan would take at this time.

Reiterating the views of Maltings council chairman Tony Lennard, made clear immediately following the refusal last week, she said: "We're looking at a period of planning and adjusting our strategy so we can go forward and develop the venue.

"The next stage for us is to investigate the selection process with the arts council so we can find out what their decision making process was.

"They've actually invited us to find out more about that.

"We're looking at how we go forward from here in terms of developing the venue, because there's no question we need capital investment here and we're going to get it.... some how."

The chief executive was adamant that the refusal was "nothing to do with the quality of our application", but simply the result of a lack of funding combined with fierce regional competition and too many requests.

"The arts council has to look nationally, look at each project in each region.

"Really, they had a very limited amount of money."

She says that Waverley council has been speaking to the Maltings following the refusal, and will continue to support the venue, both with revenue contributions and discussing the best way to generate venue capital.

South East Arts, the body who recommended the venue to the arts council, has also promised to continue offering help.

Miss Ridout added: "It's all got to be re-addressed, and re-looked at.

"We'll be talking to architects and consultants and talking about how we can adjust the project so we can go at it in a slightly different way."

The Maltings council will be meeting within the next two weeks.