A MULTI-MILLION pound bid to help build more than 3,000 new East Lancashire homes has been rejected.

The futures of 15 sites, including the former Habergham High School in Kiddrow Lane, Burnley, have been thrown into doubt after the government turned down an application for a £20million grant by Regenerate Pennine Lancashire (RPL).

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Community leaders have expressed their dismay at the decision by the Homes and Communities Agency (HCA) not to stump up the funding.

The proposed scheme, known as the Pennine Lancashire Brownfield Housing Zone, also outlined plans for homes at Finsley Gate Mill in Burnley and the disused Baxi headquarters in Wyre Street, Padiham.

Labour councillor Shah Hussain, executive member for regeneration at Burnley Council, accused the coalition of ‘contempt’ for the town.

He said: “I’m very much disappointed. I think at a time when housing shortages all over the country are a talking point, the prospect of this funding was a wonderful opportunity.

“That is was rejected again shows that Burnley is being neglected by this government. People need to know the contempt that this Conservative and Liberal Democrat government has shown for Burnley.”

The Habergham High School site was due to be used by the new Burnley High School, but the deterioration of a concrete slab covering a mineshaft forced the free school to revise its plans.

Burnley MP Gordon Birtwistle said that he remained ‘committed’ to getting the best deal for the borough.

The Liberal Democrat said: “I’m really disappointed as we were all hoping this would be approved. Habergham is a particularly dilapidated site and this isn’t the first time development there has fallen through.

“I’m disappointed that no money has been awarded to Burnley, but over the last five years we have seen a number of housing schemes go ahead in areas like Accrington Road and Burnley Wood.

“After the General Election, things will get moving again, and I’m sure there will be further opportunities for funding.”

Andrew Stephenson, Conservative MP for Pendle, where a project in Further Clough Head, Nelson, was under consideration, said he thought the bid ‘could have been stronger’.

He said: “I met with the Housing Minister to discuss this but while I was pleased the bid went in, I was a bit disappointed in it and I thought it could have been stronger.

“I’m a great supporter of RPL but only one site in Pendle was included and it was pretty much a greenfield site anyway. Obviously if I am re-elected I will work to move this forward again.”

However Will Straw, Labour’s candidate for Rossendale and Darwen in the upcoming General Election, accused the government of a ‘failure’ to properly support brownfield development.

He said: “This decision by the government is bad news for people in Darwen and in the other affected boroughs across East Lancashire.

“Unfortunately it will put more pressure on greenbelt and greenfield sites since the pot of up to £20m will not be available to develop a number of brownfield sites. “ Up to 120 new homes in Greenbank Terrace, Lower Darwen, were included in the proposed housing zone.

In a letter to the councils which backed the bid, the HCA’s North West executive director, Karl Tupling, said he would establish a steering group to ‘agree future options for the sites’.

He said: “Following the Pennine Lancashire proposal to create a Housing Zone, I am writing to confirm that following the completion of the assessment process, it has been decided that Pennine Lancashire should not be designated as a housing Housing Zone at this time.

“I appreciate that this will be disappointing news for you and your partner local authorities.

“Although Pennine Lancashire will not be designated as a Housing Zone at this time and others in the HCA will continue to work with you and your local authority partners to help support and deliver your ambitions for housing and economic growth.”

The bid was one of 29 regional applications submitted last October seeking Housing Zone status.

A HCA spokesperson added: “Whilst [Pennine] Lancashire wasn’t included in the 20 Housing Zones announced in the Budget, we are continuing to work locally to support and further develop proposals for the area.”

No-one from Regenerate Pennine Lancashire, based in Accrington, was available for comment.