An agency that helped transform the economic fortunes of east Kent has been replaced by a smaller organisation.

After more than four years, a period when east Kent has emerged from the shadows of economic gloom to become a more thriving area with huge potential, the East Kent Partnership is no more.

The South East England Development Agency (SEEDA) pulled the plug on its million pounds a year funding, a contribution that has pumped more than £4 million pounds into various transformational projects. They include Dover Pride, Margate Renewals, tourism, coastal and environmental initiatives.

It has been replaces by the East Kent Local Strategic Partnership.

Partners in the new organisation will have to make do with around £125,000 a year stumped up by Kent County Council, Dover, Shepway, Canterbury and Thanet councils.

Businessman Paul Tipple used the change to step down as EKP chairman. At a reception in Dover's cruise terminal to mark EKP's demise and the rise of EKLSP, he said East Kent had been helped to reach a tipping point and go beyond it.

"It's brought together the local authorities, the business community and the voluntary sector which together are promoting east Kent as a location where people want to live and work," he said.

Mr Tipple said this was attracting the attention of inward investors. The main challenge was raising workforce skill levels.

He said high speed trains being introduced in December 2009 would have a transformational impact on Dover's fortunes. This would plug the area into London and make it a gateway in two directions – the UK capital and mainland Europe.

Stephen Kingsman, chairman of the Denne construction group, will chair the new LSP, with Janet Waghorn its director.

Mr Kingsman said: "I've only been involved for a week but the enthusiasm and positive attitude I've seen so far has been incredible."

Ms Waghorn said less money would not mean "we're going to stop doing all the good things we’ve been doing".

"The actual level of funding that's coming into Kent isn't going to change, it's just the way it's administered."