Multi-million-pound regeneration schemes in Shropshire are set to miss out on funding because of swingeing budget cuts made by development agency Advantage West Midlands, it was revealed today.

It has been forced to axe funding for 122 regeneration schemes across the region which had been due to receive support from its budget. Shropshire schemes set to be denied include Shrewsbury’s Flax Mill and Ludlow’s Market Square.

North Shropshire Employment Land and Shrewsbury’s Shropshire Portal are also affected.

Set to miss out in Telford & Wrekin are Telford Lakeside and the Nedge Hill Science and Technology Park, both major projects involving Transforming Telford, a limited company set up to mastermind the development of the town.

The agency was forced to slash help for regeneration projects for 2008-11 by £132 million after the Governme- nt cut its budget by £48 million. Revenue from assets is also expected to fall by £20 million due to the recession.

A further £64 million was diverted from regeneration to projects designed to help business after Business Secretary Lord Mandelson told the agency to focus more on supporting industry.

The Lakeside project in Priorslee was set to include 600 homes, a hotel, sports and leisure facilities and a new learning campus.

Telford Town Centre, however, is to get funding which will see 13,700 jobs safeguarded and 4,000 created, 41 hectares of land reclaimed and 3,000 homes built.

The Shropshire Portal is the multi-million pound heritage visitor centre being developed at Shrewsbury’s old Music Hall.

It will feature a piazza housing a cafe and bistro, showpiece historical collections from Shropshire and shops incorporated into the building. Funding has come from the Heritage Lottery fund, Growth Point, and the former borough council. The Portal is due to open in 2011.

The Flax Mill in Ditherington is also due to undergo a £30 million regeneration.

Shropshire Council will be heavily involved in the scheme, and it is hoped work could begin next year, although the target start date is 2011.

The Ditherington Flax Mill Steering Group recently appointed consultants to carry out detailed design work over the next six months.

By Andrew Morris and Simon Hardy