Hull Forward, the economic development company charged with regenerating Hull, has announced it will close due to spending cuts.

The body, which employs 34, will cease operations on 30 September after failing to secure enough funding from its partners Hull City Council, Yorkshire Forward, and the Homes and Communities Agency (HCA).

Neither Yorkshire Forward nor the HCA were able to offer any funding to Hull Forward beyond 30 September, which will force it to close.

The company has now entered into consultations employees and seconded staff.

A spokeswoman said the body would continue to carry out its remit of “acting as the conduit between the public and private sectors, facilitating the development in question – either attracting the private sector investment and/or securing funds from the public sector.”

Hull Forward was launched in 2008, when it took over from the city’s Urban Regeneration Company, Citybuild.

Ian McIntosh, chairman of Hull Forward, said: “It is clearly disappointing news but we remain proud of the significant achievements made by our dedicated, professional and passionate team in providing a vital interface between the public and private sectors to drive Hull’s ambitious regeneration programme.

“Key physical regeneration projects such as St Stephen’s, Humber Quays and the current construction of the River Hull footbridge would not have happened without the work of Hull Forward’s team.

“Despite Hull being one of the most severely affected cities in the UK during the current recession, we have also created a strong platform on which a successful, sustainable economy for Hull can be built. In the last financial year alone we have helped to create or safeguarded nearly 1,000 jobs and have been involved in securing £2.6m of grants that will put a further 400 new jobs in the pipeline for the next two years.

“We have driven the development of our economic growth sectors such as healthcare, renewable energy and port related manufacturing & logistics, allowing Hull to compete more effectively for investment in the global marketplace; created the UK’s first operational World Trade Centre which has supported nearly 1,200 businesses and developed further the nationally acclaimed Bondholder scheme.

“We hope that some projects may be able to continue through other means and that the momentum of so many positive initiatives is maintained. We understand that public sector partners are discussing which programmes and projects can be taken forward in the current economic climate.”

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