Fears are growing that £100 million of Levelling up funding earmarked for five East Lancashire towns could be cancelled by the new Labour government.

The previous Conservative administration promised £20m over 10 years for regeneration in Darwen, Accrington, Burnley, Rawtenstall and Nelson.

They were among 55 towns across the country included in its Long Term Plan for Towns programme announced in October 2023.

In July the new government paused the scheme but so far local authorities have heard nothing more, sparking fears Chancellor Rachel Reeves, who will deliver her first budget on October 30, is about to drop the whole programme, with Labour facing a "£22 billion black hole in public finances".

BwD Tory Paul Marrow fears the funding for Darwen will be pulled Senior East Lancashire Conservatives Cllr Zak Khan, Cllr Paul Marrow and Cllr Jamie McGowan believe the grant allocations are about to be scrapped.

Their concerns follow local authority bosses nationwide raising fears about the future of the programme and Pendle Council and the special Nelson Town Board set up to implement the spending of the Long Term Plan grants expressing concern about the issue.

Blackburn with Darwen Council's Conservative regeneration spokesperson Cllr Marrow said: "I am very concerned about this delay in confirming this Long Term Plan money for Darwen.

"This affects the future of Darwen town centre and the viability of its businesses which are currently left in limbo.

Rachel Reeves will unveil her first Budget later this monthRachel Reeves will unveil her first Budget later this month (Image: Stefan Rousseau/PA Wire)

"It appears that Chancellor Rachel Reeves is considering dropping this entire programme promised by the previous Conservative government."

Hyndburn Council opposition leader Cllr Khan said: "I am exceptionally concerned by this delay.

"This makes it more and more likely that that this Long Term Plan for Towns programme is about the be pulled by this Labour government.

"This would be a betrayal of Accrington.

"It looks like Rachel Reeves is preparing to renege on the commitment made by the previous Conservative government."

Burnley Council's finance spokesperson Cllr McGowan said: "I think it is extremely disappointing that we have heard nothing about this.

"I do fear that the government is going to drop the whole Long Term Plan for Towns scheme."

Accrington is one of five towns in East Lancs awaiting a decisionAccrington is one of five towns in East Lancs awaiting a decision

In response to the concerns, Blackburn with Darwen Council's Labour leader Cllr Phil Riley said: "The Long Term Plan for Darwen opportunity was presented by the previous Conservative government late in 2023, and we established a clear set of priorities, but this initiative did not have enough time to gather momentum before the General Election.

"The whole national scheme is now being reviewed as the government searches for potential savings and we wait to hear the outcome of the government’s deliberations.

"However, it’s important to stress this has no impact on the progress of the Darwen Town Deal which continues to go from strength to strength delivering growth worth millions of pounds to the local economy.

"Any refocused Long Term Plan monies made available to the council would be used to drive the further growth of the town."

Hyndburn Council deputy leader Cllr Noordad Aziz said: "Accrington was one of 55 towns to be allocated up to £20m of endowment-style funding under the Long-Term Plan for Town funding.

"The council received an initial £250,000 of capacity funding to set up a Town’s Board and develop its Long-Term Plan for submission on August 1.

"However, due to the announcement of the General Election, this submission date was suspended two weeks prior and the council is awaiting an announcement on the new submission date."

Claire Bennett, chair of the Nelson Long Term Town Plan Board, said: “This delay is a setback but it doesn’t change our focus or our dedication.

"The Long Term Town Plan fund is under review nationally. We remain hopeful we will receive some form of long-term investment for Nelson.

“We’re actively working on securing alternative resources and exploring innovative solutions that ensure our community thrives if the government decides to move away from Long Term Town funding."

Karen Buchanan, chair of Burnley's Long Term Plan Board, added: "Our Town Board has been working to develop a comprehensive plan.

"While the recent decision to suspend the August 1 deadline has necessitated a pause in our activities, our commitment to listening to and where possible, addressing the priority issues raised by Burnley's residents, businesses and visitors remains unchanged.

"We expect to have more information within the next few weeks following the Autumn Budget."

A spokesperson for the Ministry of Housing, Communities and Local Government said further details on Levelling Up funding would be set out “in due course”.