A transport service for disabled islanders who work at a charity shop is to close, said bosses.
UnLtd at the Ron Short Centre said it was told on Wednesday its application to the Social Investment Fund had been rejected, forcing it to stop its transport service from 1 July.
The St Peter Port charity said the decision meant disabled people working at the centre would no longer be able to access employment because of the specialised transport requirements.
The States of Guernsey said it had "not withdrawn any recent funding from charities who provide community transport" and it was working on a "joined-up plan for community transport".