A number of regeneration schemes across south west England are under threat after the South West Regional Development Agency (SWRDA) announced that it was cutting back investment by £56m.

The redirection of government support towards national initiatives, coupled with falling land value, has contributed towards the agency's decision to reduce funding to some projects, while others may have financial backing withdrawn altogether. Among the schemes that will no longer receive SWRDA funding is the regeneration of Weymouth's seafront in Dorset, which was set to receive £6.6m to redevelop the town's pavilion. Plans to help fund the creation a visitor centre at Chesil Beach have also been shelved.

Public realm improvements in Trowbridge, Wiltshire, and the regeneration of Cinderford town centre in Gloucestershire have also been hit by the funding cuts, although the SWRDA announced that it still plans to invest more than £250m across the region over the next two years. The Osprey Quay development in Portland, Dorset, which will host sailing events at the London 2012 Olympics, will receive an additional £7.4m to help fund a mixed-use scheme that also includes a £4m training facility for the Royal Yachting Association.

Meanwhile, funding will also be provided for new visitor facilities at Stonehenge in Wiltshire (£1m) and the redevelopment of Weston-super-Mare's promenade in Somerset (£2m), including the reconstruction of the town's Grand Pier, which was damaged by fire in July last year. Jane Henderson, SWRDA chief executive, said: "Like most businesses and families throughout the region, we have had to tighten our belts and will not now be able to fund all the investments we hoped we could.

"None of these choices have been made lightly, and we regret the disappointment that will be felt by some of our partners and stakeholders in having to scale back our investment activity."