THE man in charge of East Lancashire's bid for hundreds of millions of pounds of Government cash to revitalise the area's rundown housing today denied it had been snubbed as money was given to Merseyside and Tyneside.

East Lancs missed out on a large share of the £155million housing award announced by John Prescott.

But there was an unexpected £3.3million boost from another fund to create open space and green areas in Blackburn and Darwen.

Max Steinberg, of Elevate - the partnership set up to revamp East Lancashire's housing stock - said he was not worried that a total of £155million had been given to two rivals for the "Market Renewal Pathfinder" project.

He said he was confident that East Lancashire would get the cash it needed in the next allocation to tackle rundown and low demand housing. And he added that the cash for Blackburn with Darwen was welcome.

East Lancashire is bidding for £170million from the Government's Pathfinder fund.

Last year Manchester and Salford were given £125million from the fund and yesterday Merseyside got £86million and Newcastle Gateshead £69million until the end of March 2006.

This has caused fears that East Lancashire could be left short of cash when the remaining £220million is allocated in March or April.

Tory MP Nigel Evans said: "I would have thought East Lancashire was one of the areas that should be at the head of the queue for this money. I am worried there's just £220million left for the other six areas and that East Lancashire will lose out and not get the money it needs yet again."

But Government sources said that the delay for East Lancashire was merely a result of getting the bid right and they would get a significant allocation with more to come in following years.

And Mr Steinberg, who worked for many years in the government on housing policy, agreed.

He said: "We've put in our bid to Deputy Prime Minister John Prescott for £170million in the next two years.

"We are confident we will get a substantial sum of money. After that we understand there will be more money over a 10 to 15 year period.

"We know the government is aware of particular problems with housing and social cohesion in East Lancashire and we will believe we get most of what we want this time round with much more to follow."

The £170million submission includes £43million to be spent in Blackburn with Darwen, £23.5million in Hyndburn, £27million in Pendle and £27million in Burnley with extra cash for Rossendale and Darwen and other areas.

However Blackburn with Darwen Council is one of 27 pilot areas to get up to £3.3million from the £89million liveability fund as part of yesterday's announcement.

This cash will be spent sprucing up Market Square and Sudell Cross in Blackburn town centre. Some will go to create nine neighbourhood greens with the rest helping tackle the dumping of waste and litter, partly by naming and shaming those convicted of rubbish offences in the magistrates courts.

Rossendale and Darwen MP Janet Anderson said: "This is brilliant. The money will be much needed to create green space in Darwen and Blackburn and I am delighted that there are more rangers to crack down on dumping."