Future of firm leading regeneration in doubt

The future of the company leading the regeneration of West Bromwich today hung in the balance as bosses met to decide if it could survive after losing all its funding.

Regenco will have no sources of money from April next year and its board was expected to decide to wind it up. Town MP Tom Watson has called on the company to "go now" and hand over its budget for the rest of the year to Sandwell Council so it can continue to invest in the area. Sandwell Council has decided to withdraw the £333,000 a year it gives to Regenco.

The firm was set up five years ago to attract private investment into the West Bromwich, Smethwick and Hill Top areas.

The company is responsible for masterminding a plan that aims to bring £1 billion of investment into West Bromwich.

This includes a £200m shopping development, new Tesco Extra supermarket, and a new £80m Sandwell College campus, both of which look set to go ahead.

The move came after fellow funders Advantage West Midlands and the Government's Housing and Communities Agency pulled their contributions leaving Sandwell Council picking up the tab alone.

Mr Watson said: "Regenco does not have a long term future, it cannot given its funding situation. There is no point in hanging around until next April when the money runs out.

"Regenco should redirect its remaining funding to the regeneration budget of Sandwell Council where it could be put to the benefit of borough residents."

Mr Watson said he was "disappointed" by the organisation's lack of progress on all the schemes it promised.

He added: "There is still massive development potential and the focus will now be on Sandwell Council to secure investment. Frankly it could now be easier now that Regenco is set to fold. Most businesses will think that the money will be better invested in working with them directly and will not be unhappy if Regenco goes."

Sandwell Council blamed the recession for the decision to stop funding Regenco.

Councillor Bob Badham, Sandwell's regeneration boss, said the council has given the company almost £2 million over the past five years and added he had been pleased with the work that Regenco has done.