BURNLEY's political meltdown was witnessed by two top civil servants on a fact-finding mission to the town, it was revealed today.

Joe Montgomery, the Director General of the Tackling Disadvantage Group at the Office of the Deputy Prime Minister (ODPM), and Home Office Permanent Secretary Leigh Lewis arrived in the town on Thursday to news that the council was in turmoil.

And a senior councillor today warned the crisis sparked by the Liberal Democrats could jeopardise plans for the town's regeneration.

The visit followed the resignation of council leader Stuart Caddy, and other members of the ruling executive, at Wednesday night's council meeting.

Coun Caddy quit after the power of the executive was snatched from Labour by the other parties, who will now, minus the British National Party, form a coalition.

Coun Caddy and former executive member Peter Kenyon were due to meet the civil servants, but those plans were cancelled after Wednesday night's events.

Coun Kenyon, who resigned as executive member for best value and resources, said: "There is bound to be a period of political instability after what happened and a lack of political leadership.

"The Elevate programme to regenerate housing in the town and the LIFT project to build a new health and leisure centre in Burnley are among the schemes at risk because of the instability on the council where clear leadership is needed to deliver them."

But Liberal Democrat leader Gordon Birtwistle, who proposed the motions prompting the loss of the executive, denied any schemes would be at risk.

He said: "I can assure everyone there will be no problem. "It is the people of Burnley who have voted for this in the local elections. They wanted change and I have followed their wishes."

The visit included a seminar at Turf Moor discussing issues including employment, crime, education, health and housing. Burnley council chief executive Gillian Taylor said: "The visit was part of the ongoing relationship between the Home Office, the ODPM and the borough."