The agency set up to create jobs and boost the county's economy will be asked to explain what it has achieved in its first year.

Prospect Leicestershire was established in April 2009 and costs more than £1 million a year to run.

Chairman Nick Carter and chief executive David Hughes will appear on Wednesday before Leicestershire County councillors, who want to know what has been achieved in the past year, and what it plans to do in the future.

The city council and county council pay £250,000 each to fund Prospect Leicestershire each year.

The meeting comes following a Government announcement that the East Midlands Regional Development Agency (Emra), which provides part of the agency's funding, will be scrapped.

District councils contribute £125,000 in total, while the East Midlands Development Agency and the Homes and Communities Agency give it £225,000 each.

It is likely that Prospect Leicestershire's funding will be cut as public bodies try to make savings, and major spending programmes which it partially oversees are curbed.

This year it is due to spend more than £1 million on staff, £200,000 on its office space in Colton Square, £17,000 on consultants and £10,000 on marketing.

A joint report to councillors from Mr Carter and Mr Hughes outlined what the organisation had done over the past year.

Prospect Leicestershire pledged to focus on more regeneration projects outside the city when it was set up last year.

In it, they say the agency has secured £50,000 to fund design and feasibility work to improve Loughborough rail station in time for the Olympic activity in 2012, and a further £25,000 to employ consultants to draw up a "masterplan" for Melton's cattle market.

It also says that it secured a £4.2 million package of European and Emda funding toward the development of an innovation centre, and £8,000 to help plan a town centre regeneration project in Hinckley.

Mr Carter said: "It would be inappropriate to speculate on the future of Prospect Leicestershire before speaking at the scrutiny committee first."

Prospect Leicestershire brought together the Leicester Regeneration Company and inward investment agency Invest Leicestershire under one umbrella.

It was designed to help the area through the current economic slump and prepare it for when the upturn comes. The organisation has a ten-year lease at Colton Square.