Work has begun to secure the future of regeneration company Preston Vision - despite its funding being axed.

Chair Malcolm McVicar says there is an urgent need to consider alternative funding solutions for the organisation, whose existence is vital if the renaissance of Preston is to stay on track.

The news came after the Northwest Regional Development Agency announced that, following government budget cuts, it is unable to provide revenue funding to Preston Vision after March 2011.

Mr McVicar, also the Vice-Chancellor of the University of Central Lancashire, said: ‘Preston is the jewel in Lancashire’s crown and it is absolutely vital that the regeneration of the city continues.

‘Preston Vision is the link between the public and private sector. Without the organisation, it is difficult to see how programmes such as the creation of the Central Business District – a home to grade A office space designed to attract scores of new companies – will still happen.

‘That sort of development is absolutely essential to the future of this great city and its residents.’

It has already been announced that NWDA capital funding for several schemes in the city, including the redevelopment of the Flagmarket and Winckley Square, has been cut.

However, Preston Vision will have a key role to play in seeking funding to cover the costs of these schemes to try and save them.

The organisation’s operating costs are also a fraction of other regeneration companies around the country and a tiny proportion of the investment it will attract to the local economy.

Mr McVicar added: ‘Preston has in recent years been in the top ten nationwide cities for private sector job creation, with 17,100 jobs created in the ten years up to 2008. However, if the city is to continue to fulfill its potential, the initiatives currently being co-ordinated by Preston Vision are absolutely essential.’