Lichfield District Council is set to permanently withdraw the funding it gives to the Jigsaw community hub.
The local authority has previously paid an annual grant of more than £9,600 to Fusion Credit Union which runs the facility on Dimbles Lane.
Jigsaw was originally operated as part of the North Lichfield Initiative before being taken over by the credit union in 2014.
An extension to the grant funding was given at the end of the term earlier this year while a review over the council’s future commitment to the site was carried out.
A report to the council’s Cabinet has now recommended that the arrangement ends, after claiming only 6% of users were visiting the site for reasons other than the credit union.
Jigsaw will still continue to be operated by the credit union without the council’s cash.
The report added: “The overall purpose of the agreement was to ensure that the community premises known as Jigsaw continued to provide meeting space, information, signposting and support to local residents and offered appropriate services.
“During the course of the review [which began in January] the council has been advised that Fusion no longer require grant funding to continue to operate in the premises but have committed to continue to provide a signposting service and make the room available for hire.
“The ward councillors from Curborough have been consulted and are in support of the recommendations.”
The issue will be discussed at the Cabinet meeting at Lichfield District Council this evening (9th July).