RUNDOWN private homes have received a funding blow at the expense of houses in neighbouring boroughs.

Council bosses are dismayed that Government cash to improve homes is being reduced, at a time when Bury is being lauded as the most improved in the country.

Bury received £1,543,000 for improvement grants this year, but this will be reduced to £1,484,000 next year and to £1,384,000 in 2005/2006.

Meanwhile, Bolton is getting £5.6 million this year, Salford's money is increasing from £4.5 million to £5.4 million, and Burnley (which is smaller than Bury) will see its cash rise from £2.3 million to £2.7 million.

Mr Mark Sanders, the council's chief executive, said: "It is a hammer and sickle syndrome, where a sickle of councils around us are benefiting from increases but we are being hammered in the middle."

The money has been allocated under a new system which aims to help areas in greatest need. Two other councils in Greater Manchester, Stockport and Trafford, also lose out.

But Mr Sanders is worried that cutting Bury's cash could prove self-defeating, creating more rundown areas and encouraging people to move into improved housing in the other boroughs.

He added: "This news is very disappointing, especially when our performance indicators for this service are very good. Any cuts in our grant for this type of work will affect our ability to improve areas like Pimhole."