BURNLEY Council leader Stuart Caddy used a public meeting to reassure residents that the borough's £15million share of Government regeneration cash would only be spent after consultations with locals.

People living in South West Burnley called a meeting with the council boss after concerns over how the money was to be allocated.

Residents feared the cash would be used to bulldoze their homes without consultation - which Coun Caddy assured was not the case.

He used the meeting at the Howard Street Health Centre on Saturday to dispel rumours over the proposals in the Neighbourhood Action Plan for South West Burnley, submitted as part of the Elevate bid.

Coun Caddy said that 200 homes would have to be demolished by the end of April to keep in line with spending targets, and warned that if the first tranch of the money was not spent by March 31, 2005, the cash would go to another authority.

Speaking at the meeting, he told residents that the detailed work on how the money would be spent would start now it had been allocated.

"We have consulted in Burnley more than any other authority in East Lancashire about Elevate, despite what people have been saying," he said.

Sarah Green, of Palatine Square, in Trinity, said: "We realise that some houses have to come down, we appreciate that, but we believe that many can be remodelled, so that the character of the areas is not lost.

"We also want to see the stone from any houses demolished used in any new homes that are built."

Coun Caddy added: "The Neighbourhood Action plans were needed for the bid. We worked with the community to develop them.

"What we want now is real active engagement with residents to ensure that they get a better place to live and that we create a better, sustainable community for all three areas."

He said a team of support staff were being recruited to find out exactly what people want. "Hopefully this will stop the stress and anxiety that's been created over the last few months," he added.

Consultation meetings were to take place today at Burnley FC 2.30pm and 5.30pm.