A campaign in support of a lagoon to generate energy from the Severn Estuary will continue despite the organisation behind it losing its º£½ÇÊÓÆµ Government funding.

The Severn Estuary Commission published a document in March advocating for a tidal lagoon. The report urged both the º£½ÇÊÓÆµ and Welsh governments to back the project, which would be smaller than a previously rejected barrage spanning the Severn.

The Cardiff Capital Region, representing the 10 local authorities in south east Wales, and the West of England Combined Authority will now collaborate on the proposal.

The independent commission was set up by the Western Gateway Partnership, which united 28 councils from Pembrokeshire to Swindon and Salisbury, but is set to formally disband in June.

Initially formed as a collaboration between Cardiff, Newport and Bristol councils in 2016, the partnership expanded and received º£½ÇÊÓÆµ Government support. The partnership also secured backing from the private sector and universities on both sides of the border.

However, the Labour Westminster government announced in its October budget that it would withdraw £1m annual core funding for what were known as pan-regional partnerships. Instead, it wants the new system of elected mayors in England to take up their work.

Monmouthshire County Council leader Mary Ann Brocklesby said: “While the decision can be seen as disappointing it has not impacted the commitment of local authorities or other bodies on both sides of the border to continue to work together on projects that jointly benefit all our communities and businesses."

In its report the independent Severn Estuary Commission ruled out a Severn Barrage with the potential to generate around 7% of the º£½ÇÊÓÆµâ€™s electricity need, recommending over the long-term a series of commercially viable tidal lagoons. .

The commission's report concluded that a barrage, that would create reliable and clean energy from one of the world’s highest tidal ranges, should not be pursued at this stage, due to its environmental impact, legislative challenges and disruption to ports, such as Bristol, and other commercial activities.

Rather than a tidal barrage, for which there have been numerous proposals over the years, it says that a series of commercial tidal lagoons could be developed - although at this stage not specifying any numbers or potential locations. The initial focus would be on one lagoon.