FAR-RIGHT British National Party councillors voted against a council motion aimed at quashing false rumours about allocation of regeneration funding.
Council leader Stuart Caddy said he was "sick and tired" of misinformation about regeneration cash being given to certain areas over others.
He proposed putting out an open leaflet in the borough to counter the rumours.
The motion was moved at a meeting of Burnley Council last night.
He said: "It is with increasing concern the council notes the continuing misinformation disseminating throughout the borough regarding the allocating of regeneration funding.
"We believe the council should set an example by requesting that all partners that have signed up to Burnley's Future or the borough's Community Plan, join together in a campaign to present this misrepresentation of the facts.
"The kind of action only creates disharmony within communities and it is not in the best interests of the Community Plan nor the residents of the borough.
"The council is requested to produce an open leaflet as a matter of urgency giving out the facts and information on regeneration funding that is easily understood by the community.
"We call upon all councillors and organisations to sign up and pledge their support to Burnley's Community Plan which has a vision to celebrate our diverse community and foster pride in our borough."
The motion was passed with 28 councillors supporting the proposal, six abstaining and the six BNP councillors voting against.
BNP leader Len Starr said: "This is another attempt to sway the public. We have already had the face-to-face roadshows and now Coun Caddy wants to spend more money putting an open leaflet out."
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article