EDUCATION and regeneration leaders in Burnley have hit back at claims they are wasting money meant to tackle the town’s chronic unemployment problems.

The Lancashire Telegraph revealed last month how councillors have formed a sub-committee group to look into how £6.5million handed to Burnley Council by the government is being spent.

Whitehall says the working neighbourhoods fund (WNF) should be spent on tackling unemployment but town hall bosses, backed by senior councillors, are instead splashing some of the cash on policing, CCTV and railways.

However, council leader Gordon Birtwistle has defended the scheme. He said: “We are spending this money directly on unemployment but there is a bigger picture.

“We need to create a strong environment for investment and somewhere businesses will look to invest to create jobs. It appears some people do not share our vision.”

Others have said that Burnley’s new £83million university campus and the Oval shopping centre development justify using WNF cash on “long-term” regeneration plans in the town.

Burnley College principal John Smith said: “I recently spoke to senior people from across the north west on investment to improve children's education, investment in top quality college and university education, investment in a new business enterprise park and investment in a direct rail link with Manchester.

“These are the big projects, which will create a better future for Burnley. I strongly support this approach.”

And Shufkat Razaq, from business support group Burnley Enterprise, added: “There are so many reasons why this funding is being used in the right way.”

Meanwhile, the Government minister in charge of the WNF, has accused councils of not spending the money properly.

Hazel Blears, Secretary of State for Communities and Local Government, said the scheme is about “thinking outside the box” and not simply “to allow local authorities to commission more of the same”.

Currently 11,000 people in Burnley - or one in five of the borough’s working-age population - are on benefits.