A £13MILLION project is set to transform parts of central Blackburn and stop East Lancashire shoppers flooding to other towns.

Councillors were told yesterday that a bid for money from the North West Development Agency, which could trigger private investment and result in a total £70million being spent in the town, had been successful.

The money is set to be used to redevelop run down areas in and around the town centre by preparing sites for major developments.

According to a Blackburn with Darwen Council report, up to 3,000 jobs could be created, 50 new business formed and 250,000 sq m of new floorspace be developed for business.

Sudell Cross could be the first area to benefit from the five year programme of work and the council is already drawing up plans for improvements and new landmarks that would see it transformed.

Land between the Freckleton Street Bridge area and King Street has also been earmarked for re-development and a study is to be done into whether the market complex should be knocked down and replaced.

The council's new private partner, construction company Bovis, is drawing up plans to use its own money to regenerate key sites, which include the markets off Ainsworth Street.

As well as improving the town centre itself, the council hopes the grant will raise average wages by bringing in better quality jobs, bring more visitors and reducing crime.

Raymond Goldstone, president of the Blackburn and District Chamber of Trade, welcomed the news. He added: "It is good to see the money being spent in the town and we are looking forward to what is going to happen. But we still waiting to hear exactly what it would mean. We also want the money to be spent wisely and not wasted."

Ian Whittaker, NWDA area manager for Lancashire, said: "This massive investment demonstrates a major opportunity to improve the retail offer and economic vitality of Blackburn town centre. The scheme not only has the potential to create significant employment and training opportunities for local people, but will also help to project a positive image of Blackburn and improve investor confidence."

The bid for the money was put together after a report revealed that the town centre was under-performing and there was a demand for an extra 200,000 sq metres of retail space.

The report also revealed that East Lancashire shoppers were flocking to Preston and Bolton, a trend which the council is eager to reverse.

The Trafford Centre shopping complex on the outskirts of Manchester was also said to be attracting floods of people from Blackburn and other East Lancashire towns.

Sir Bill Taylor, leader of Blackburn with Darwen Borough Council, said: "This is the start of an exciting period of growth for the council and I am confident that we can achieve a significant step change in the transformation of the town centre over the next five years as progress towards our ambition to be a strong focus for shopping, leisure and culture in Lancashire continues apace.

"We still have to continue to work hard to make sure the money is spent in a way that will have the biggest impact."

Andy Kay, the council's regeneration head said: "This new funding will enable us to continue to deliver quality projects and have a strong influence on the successful delivery of our Town Centre Strategy."