A business organisation set up to promote economic prosperity in Hampshire has folded.

The Hampshire Economic Partnership (HEP) blamed council and other taxpayer funding cuts for the decision to close after nearly two decades of supporting county businesses.

It said it had agreed to cease trading, with immediate effect, as a result of "significant financial challenges it has been facing and changes in the economic development landscape".

The closure of a major funder, the South East England Development Agency (SEEDA), played a major role in the decision, it said.

The HEP had recently joined forces with the Hampshire Chamber of Commerce and Southern Enterprise Alliance to form the Hampshire Business Alliance, which will continue.

The HEP moved to new offices in Wates House, Wallington Hill, Fareham, in June. It was previously based in Southampton.

It worked with local government to develop business friendly economic policies and provided a forum for business groups to meet and discuss issues as well as producing economic research.

Its work included organising conferences, applying for European Union funding and holding ‘meet the buyer events’ where small companies were put in touch with the buyers of large organisations.

It had a well-established network of eight trade sector task groups.

The Hampshire Business Alliance last night confirmed it would carry forward key elements of the HEP's work.

HEP deputy chairman Dick Oram said: “The Hampshire Economic Partnership is proud of what it has achieved for Hampshire and its businesses over many years and we know that this work will continue through the new Alliance in co-operation with partner organisations, including the Local Enterprise Partnerships."

Jonathan Morris of Southern Enterprise Alliance said: “We are working with HEP stakeholders and the HEP Board to ensure the excellent foundations and track record of HEP can be built upon.”