Regional development agency Advantage West Midlands has taken the axe to more than 120 projects as part of a multi-million pound cost-saving exercise.

It comes after the Government slashed AWM’s £300million-a-year budget by £48 m, forcing a review of more than 900 projects across the region.

One of the most high profile victims is Lichfield’s £100m Friarsgate city centre redevelopment, which has had AWM funding withdrawn as part of the cost cutting, effectively killing off the scheme.

AWM was today refusing to name the other 121 projects losing their funding. It was today writing to inform them of the news.

City MP Michael Fabricant said the Friarsgate funding cut was “disappointing news” but said he was not surprised. He added: “I fear this means that Friarsgate is dead in its planned form for the foreseeable future.”

AWM spokesman Phil Brown said Friarsgate had been a difficult decision said: “In the present climate we are having to focus all our efforts on projects that make maximum impact in the short to medium term.”

He said £1.1 billion would continue to be spent on 784 projects over the next two years. This includes £138 m for major projects in Wolverhampton, Walsall, Dudley, Brierley Hill and Sandwell.

Mark Foley, AWM partnerships director for Birmingham, the Black Country and Solihill, said these included £64m on the i54 industrial development in Wolverhampton, £18m on the Bilston Urban Village, £10m on the Wolverhampton interchange and new bus station, £10m for the Walsall Waterfront and Gigaport projects, £13m for the redevelopment of Dudley town centre and the Castle Hill and zoo scheme.

West Bromwich town centre, the All Saints office development and the new Sandwell College will receive a total of £23m.