A PUB which was earmarked as the BNP’s Burnley headquarters is set to be pulled down.

Burnley Council bought the Derby Hotel, on the M65 roundabout at junction 10, for £290,000 last year using cash from regeneration body Elevate.

But Labour and Tory councillors have accused the borough council of wasting public money instead of finding a proper use for the building.

Labour leader Coun Julie Cooper said: "It is absolutely ridiculous. Having bought it up they are now knocking it down at further expense.

"The Lib Dems are cutting funding for the Citizens Advice Bureau by £75,000 but can waste money on this.

“If this is what they think the people of Burnley want then they are clearly out of touch with their people. It is just ludicrous, it beggars belief.”

The empty building has been covered by large billboards as it was seen as an "eyesore" on a key gateway into the town.

Plans to put a piece of public artwork in its place have now been shelved due to a lack of money.

Tory Coun Jonathan Gilbert, whose ward covers the pub, said he was given less than 24 hours to have a say on the plans.

He said: “I was given less than a day to comment and was away on a personal matter at the time. That just shows the face of democracy in Burnley.

“I think it is a shame as it is a good building and a nice building, it could have been put on the market rather than squandering public money on it.

“This is not tacking the real issues facing the town, it’s just window dressing.”

The council used money from East Lancashire’s housing regeneration firm Elevate to buy the building, which is thought to date back to the 1870s.

At the time they said the move would reduce anti-social behaviour in the area, and were considering using it for a display of public artwork.

The BNP looked at the building last year before the council stepped in to buy it.

BNP Coun Derek Dawson said: “As soon as we got in a position to make an inquiry for the building the council bought it. I’m sure it was just to stop us getting it.

“It’s a shame they are knocking it down because it is a fine building. To just put some grass there is a huge waste of money.”

But council leader Gordon Birtwistle denied the claim.

He said: “There are now immediate plans for the site other than to grass it over.

"It is a main route into the town and has been derelict for a number of years, it is just an eyesore really. This will improve one of the key entrances to the town.”

Roger Frost, chairman of the Burnley Civic Society, said: “This area was once a vibrant community before the M65 was built.

“But now it serves an area that has no real community. It had become a bit of an eyesore really.”

Burnley MP Kitty Ussher said: "It has been an eyesore and has been a bad advertisment for the town so I was glad the council bought it as it meant they were going to improve it. Grassing it over is definitely an improvement."

The building is likely to be demolished in the next few weeks.