REGENERATION funding for East Lancashire could be heading towards Burnley instead of Blackburn, councillors fear.

Housing market renewal programmes for 2008-11 are currently being discussed with regeneration company Elevate - but opposition councillors fear that much-needed funding is destined for Burnley instead of Blackburn with Darwen Council.

Changing criteria for major initiatives are thought to be behind the situation - which Blackburn's ruling coalition and housing officials deny will happen.

Coun Kate Hollern, Labour leader, said: "There must be an opportunity for us to identify properties within Blackburn with Darwen that will meet these criteria.

"I think that in most wards of this borough there must be some housing which fits the bill.

"We need to keep the pressure up to secure adequate resources for our borough."

Coun Salim Lorgat, executive regeneration member, said: "We are pushing hard to get our share of funding."

Critics had claimed regeneration work had ground to a halt in the borough but progress was being made on every project being undertaken by the council, he added.

Andrew Lightfoot, the council's regeneration director, added: "There is a review of the criteria for 2008-11, and we have contributed to that and these will be finalised soon.

"There are some risks associated with that but we are working with Elevate to ensure Blackburn with Darwen gets a good share of the overall funding."

The storm has emerged amid criticism over a decision by the coalition to allow Burnley to take Blackburn with Darwen's seat on the North West Housing Forum and Regional Assembly.

Coun Mohammed Khan, the former Labour representative on the housing forum, had expressed concern that Burnley council leader Gordon Birtwistle would be representing Blackburn's and East Lancashire's interests.

Council leader Colin Rigby said he was sure Coun Birtwistle had plenty of experience of regeneration issues and would ensure that Blackburn with Darwen's views were fairly represented at a regional level.

An Elevate spokesman said final funding levels for the organisation's 2008-11 programme had still not been finalised with central government.