A ROW between two councils over how extra council tax gleaned from holiday home owners should be spent looks set to scupper an attempt to stem Ribble Valley's affordable housing crisis.

Ribble Valley Council wants the extra money it would collect by slashing the discount second home-owners with properties in the area get, on supporting projects which help local people find homes in the borough.

But Lancashire County Council is refusing to give the scheme its support, saying that the multi-agency Local Strategic Partnership should decide how the cash is spent.

Ribble Valley has begun issuing compulsory purchase orders to seize houses which have been empty for long periods of time, which it wants to bring back into use for local people who are being priced out of the property market in the area.

Unlike the rest of East Lancashire, there is a serious shortage of affordable accommodation in Ribble Valley, leaving many young people either living with their parents of having to move out of the towns and villages their families have been part of for generations.

The situation is so chronic that, when 26 council-owned properties became available last month, more than 600 people applied for them -- including hundreds of families. The problem stems from commuters and wealthy families paying over the odds to either move into the area or buy holiday cottages in the valley.

According to Ribble Valley, there are around 700 empty properties in the Ribble Valley. The council wants to begin buying them, carrying out any repair work necessary, and then renting them out to people in communities who would otherwise have to leave.

But limited resources mean only a handful of properties can be bought at a time -- unless they cash in on new Government rules which mean second-home council tax discounts can be scrapped.

There are around 700 holiday homes in the Ribble Valley, and that could generate an extra £300,000 in revenue a year.

Currently, those homes get a 50 per cent discount.

Ribble Valley chief executive David Morris said: "Before we change the rules, we want an assurance from the county council that the money we get is actually spent in the Ribble Valley."

County councillor Tony Martin, in charge of finance at LCC, said: "It is not Ribble Valley's money, any more than its LCC's money, it belongs to the people of the district, so if they want to levy the money I will agree to put it into the District Local Strategic Partnership, if the District does the same.

"The District Council can then argue the case for spending it how they want to at their LSP."

Council leader Chris Holtom said: "It needs resolving. Without doubt, affordable housing is the biggest challenge we face."

Coun Frank Dyson, leader of the Lib Dems at the council, said: "This is an issue which needs to be sorted as soon as possible. Affordable housing is so scarce around here, it would be scandalous to pass up on this opportunity."