An ambitious plan to create a home for budding Oxfordshire biotech companies is being wound up after being refused a Government grant.

The Oxfordshire Biobusiness Centre, at Littlemore Park, was named 'Best Science-Based Incubator 2003', in competition with similar centres worldwide.

Now it will close by the end of September after failing to secure up to £700,000 of public money.

Managing director Nigel Wild said: "We were planning to move to Milton Park so that we could expand, and we have been negotiating with the South East England Development Agency (Seeda) for the best part of three years.

"But Seeda decided that it was not going to fund us."

Seeda's executive director, Jeff Alexander, said it had tried to support the centre, which had provided support for young biotechnology businesses in Oxfordshire.

He added: "Seeda is disappointed that we have had to conclude that such support would provide at best a short-term solution to the needs of the tenant businesses and that therefore it would not represent a prudent use of public resources."

The centre's investors -- venture capital company 3i, the Oxford Trust and Sir Martin and Lady Wood -- have lost their money, although Mr WIld declined to reveal how much.

Also, half a dozen start-up companies, employing more than 30 people, are now looking for new homes.

Success stories include cancer research company ProImmune, which has expanded on to the Oxford Science Park. Current tenants include Ribostem, run by RM founder Mike Fischer; Caretek Medical, developing a needle-free injection system and enzyme company Green Biologics, developing fuels and chemicals from renewable sources.

Charles Potter, of Caretek, said: "Obviously, we are very disappointed. It has been pitched at a level where young companies can afford it, but if that's not viable, then there's nothing we can do."

The centre was set up five years ago with the help of £400,000 from the Department of Trade and Industry.

At its height, it was home to 80 employees working for half a dozen different biotech companies.