Preston Vision is to lose all of its employees after the organisation’s three founding partners said they were unable to secure “a sustainable source of funding” beyond next March.

The think-tank has been under review following the cuts to public spending, with its £425,000 of funding from the Northwest Regional Development Agency set to run out on 31 March 2011.

Preston Vision’s founders – Preston City Council, Lancashire County Council and the University of Central Lancashire (UCLan) – said alternative funding streams had been sought but none had been forthcoming.

The organisation’s employees will be made redundant once the current funding runs out. However, its founders said the Preston Vision brand would remain.

A statement said: “The board agreed to retain the company structure and remain operational in order to ensure regeneration plans are still carried out by the founding partners; Lancashire County Council, Preston City Council and UCLan. Excellent work had been completed by the staff of Preston Vision and this will create a strong foundation for the future.

“Although it will not have its own staff, Preston Vision, the company charged with promoting regeneration in the city, will remain operational.”

Malcolm McVicar, vice-chancellor of UCLan and chairman of the Preston Vision board, added: “We have a clear vision for Preston which is still attainable.

“It may be that the scale and pace of achievement slows down but we have clear priorities for the future and together the founding partners will be working hard to draw in funds from new sources such as the proposed Lancashire local enterprise partnership, the Evergreen Fund, and the regional growth fund.”