Details of the cuts which are likely to hit big regeneration projects in Leicestershire have been met with disappointment and anger.

Yesterday, the Leicester Mercury revealed how a leaked briefing note showed the city's proposed business quarter and flagship science park – which could have created up to 600 jobs – face the axe because of cuts in Government funding.

A £67m bus station also looks unlikely to go ahead.

Vicky Vass, pro-vice chancellor of De Montfort University, said: "It is disappointing to hear that the development of the Leicester Science Park Innovation Workspace is under threat.

"There is a shortage of space in the city of the type proposed. "The Science Park would be a natural progression destination for small businesses that have been developed within the DMU Innovation Centre."

The city council hoped the science park development for up to 50 firms, on land next to the National Space Centre, would kick-start an enterprise boom.

It would cost £4.8m and the majority of the funding was due to come from regional and Government sources.

The business quarter, close to the railway station, would need £9.2m to get the next and final phase of the development under way.

Most of the cost is earmarked to clear the existing site for development, but if the £3.5m pledged by the East Midlands Development Agengy (Emda) was lost then it would be unlikely to go ahead.

Roy Botterill, from law firm Harvey Ingram, said: "It would be sad if this didn't go ahead.

"A development such as this could have stopped the trend that we've seen over the past five or 10 years of local businesses moving away from the city centre."

Nick Carter, chairman of Prospect Leicestershire, said: "The new business quarter is a very important project that will bring significant benefits to Leicester and Leicestershire over the next five to eight years, and a lot of hard work has gone into planning it."

The cuts have come about because Emda, which spends government cash, has been ordered to find up to £30m in savings in its £110m budget this year – £6m more than first expected.

Funding for the replacement for St Margaret's bus station is yet to be secured and councillors believe it is now unlikely to go ahead in the near future.

Retired Barbara Johnson, 70, relies on the bus to travel around the city.

She said: "It's very sad to hear the news and it's quite disappointing.

"I would have liked to have seen the bus station done up."

But John Wanless, 42, from Belgrave, said: "When a business quarter would cost £9m how can you justify £67m on a bus station. It just doesn't make any sense."

Emda says it is still discussing details of cuts but must share a fair burden of £6bn savings announced across the public sector.