HALF-a-million pounds of taxpayers’ money is set to be spent buying a funeral parlour – only for it to be demolished.

Blackburn with Darwen Council bosses said the £535,000 purchase of Iqbal Funeral and Memorial Services would lead to major money-spinning developments in the area.

But opposition councillors have slammed the “crazy” price tag, branding the council’s ambitions “pie in the sky”.

And an estate agent said he thought the deal was “bizarre”.

The building, in Accrington Road near the main Tesco in Blackburn, will be knocked down along with the neighbouring former Printer’s Arms pub which the council also snapped up in April for about £400,000.

Bosses would not reveal the precise details of their plans for the site, but it is thought changes to the road network, possibly to link with Burnley Road, are part of what is being considered.

Chief executive Graham Burgess said the investment showed the council’s faith in the borough during the current economic downturn.

He added: “I am not nervous at all about this. There is plenty more to come in Blackburn.”

The price tag for the funeral parlour was defended by Coun Michael Lee, executive member for resources.

He said it included compensation for the funeral business as well as the building itself.

Mr Burgess added: “I don’t think we’ve paid over the odds.

“You have to pay a bit more to extinguish the business. It’s a big area, and it makes it a very good site.

“This will add value way beyond the £500,000 we’ve paid for it.”

The sale, which is not a compulsory purchase, was agreed behind closed doors last night by the council’s ruling executive board.

Coun Kate Hollern, the leader of the opposition Labour group, said: “It seems an awful lot of money.

“When you look at the pressures on departments like social services and leisure, you would think it’s a time to be prudent.

“They may have a grand plan, but they’ve had grand plans in the past that haven’t come off. It’s a big commitment with a lot of uncertainty.

“Right now, it’s pie in the sky and we have a lot of money tied up in it.”

Blackburn estate agent James Whitehead said: “It seems a lot of money for an old roadside building.

“Unless they have a definite plan for it, it seems a bit bizarre at a time when constraint should be shown by public authorities.”

Rashid Iqbal, who owns the funeral parlour, confirmed negotiations had been taking place with the council in recent months, but said a deal had not yet been signed.