A MASSIVE blow has been dealt to the regeneration of East Lancashire after plans to transform rail links to Manchester were shot down.

The Department of Transport's decision was today met with anger and disbelief.

The work could have led to half-hourly services between Blackburn and Manchester throughout the day and increased rail capacity at peak times.

But the government has snubbed the council's bid for £8million worth of funding saying the scheme is "not under consideration".

And Network Rail chiefs have also distanced themselves from the plans, claiming "the business case does not stack up".

A delegation led by Blackburn MP Jack Straw has organised an urgent meeting with railways minister Tom Harris to try and reverse the decision.

Political and business leaders, who say the improvements are desperately needed to boost the future prosperity of the area, have slammed the government's stance.

Blackburn with Darwen council leader Colin Rigby claimed East Lancashire was being neglected in favour of more affluent areas.

He said: "The tragedy is if this was down in Oxfordshire they would be chucking millions at us.

"It's the way politics works that the South seems to get the cash. We have to get that transport link opened up."

And Mr Straw said that he would continue to fight for the improved rail link.

He said: "I know that's what they are saying, but we want to persuade them to do something different.

"It's something I am not accepting, which is why I am having a meeting with the railway minister.

"I will keep on going until we succeed. I have been involved in battles like this before."

Northern Rail, which runs the service, currently operates half hourly trains at peak times, but only hourly throughout the day.

The upgrade would make the service half-hourly Monday to Saturday and add more carriages to increase capacity at busy times.

Central to the scheme is the mile-long stretch of single track between Darwen and Bromley Cross, which would be doubled to cut down on delays due to lack of passing places.

Signalling would be improved and better rails added at Turton.

The decision to reject the bid was branded "nonsense" by Mike Damms, the chief executive of the East Lancashire Chamber of Commerce.

He said: "It's just a perverse decision and you wonder what information they have used to come to that conclusion."

Labour leader Kate Hollern said: "I am extremely disappointed, and someone should be asking the question why this has happened.

"They obviously haven't made a strong enough case."

Blackburn with Darwen council chief executive Graham Burgess will be at this month's meeting alongside Mr Straw, Hyndburn MP Greg Pope and member for Darwen and Rossendale Janet Anderson.

Mr Burgess said: "I think this certainly isn't the last of the matter.

"We feel we have a strong business case and capacity on that line is going up massively.

"I am still optimistic that we can get it reviewed - it's only £8 million, which is a tiny amount of money."

Council bosses hope a 'rail utilisation study' of Lancashire and Cumbria, due to be released by Network Rail next month, will make a case for the improvements.

But Keith Lumley, of Network Rail, said: "It will probably say that as far as the railway industry is concerned, there is not a business case for doing the track doubling."

Mr Lumley said 80 per cent of passengers use the line at peak times, when there is already a half-hourly service.

He said: "There is simply not the passenger numbers and we don't think the business case stacks up."