AN innovative scheme to create a state-of-the-art science park next to Blackburn's new super hospital is back on track after council bosses averted a funding crisis.

They have diverted more than £300,000 of their own reserves into the preliminary work at Blackburn's Medi-park, being built on land between Haslingden Old Road and Shadsworth Road near Guide.

The money had been expected to have been covered by Single Regeneration Budget funds allocated to the borough by the North West Development Agency.

But a projected overspend of £200million on projects across the region has forced the red-faced agency to hack back its spending, reducing Blackburn with Darwen's SRB allocation by around £1million.

Around 60 community groups have suffered funding cuts as well.

But work on the Medi-Park site will begin later this year after funding was found from the council's coffers to pay for the work.

A spokesman said: "It will include infrastructure work, such as the laying of roads, to start the site.

"We have covered the money from our resources."

The Medi-Park idea is described by executive member for regeneration, Andy Kay, as being 'not unique but few and far between'.

It is hoped to entice science, medical and bio-tech firms onto the site with the aim of creating hundreds of new jobs.

The idea is that the firms can use each other's products and feed off each other to build, grow and develop a reputation for Blackburn as a centre of excellence.

Feasibility studies have shown that the project has the potential to attract £3million of private cash for every £1million of public cash pumped into it to get it started.

Initially, it is hoped an office complex will be developed on the site, which will act as a catalyst for other firms to come on to the site.

Initially, around 125 jobs are expected to be created, with hundreds more following as the site expands. It is hoped that the development will also lead to regeneration in the Queen's Park area, with some of the new jobs going to locals.