Construction projects could be at risk as funding cuts force the winding up of the body responsible for regenerating Wolverhampton.
As Advantage West Midlands also faces the axe and Wolverhampton City Council reviews its budgets, Wolverhampton Development Company has been told its funding would be cut.
“It is now clear that funding to WDC can no longer be guaranteed to March 2011 as the funding partners are having to make difficult decisions as to the level of financial support they are able to give to organisations,” said chief executive Stephen Catchpole.
“In these circumstances, our board has recognised that the only practical course of action is to work towards an orderly completion of the activities of the company.”
“It will take some weeks to establish the financial position, following which a firm date for the cessation of operations can be agreed by the board and our funding partners.”