A councillor has hit out at a smear campaign after posters were put up claiming he planned to turn a former pub into a Muslim school.

Coun Mohammed Khan, deputy Blackburn with Darwen Council leader, said he had been forced to speak out after the leaflets were put up in the Bank Top ward.

The posters claimed that Coun Khan was the owner of the empty Three Pigeons pub in Oakenhurst Road.

They claimed he was planning to use council cash to turn it into a Muslim school, and added at the bottom: "Remember who to vote for next year."

The state of the Three Pigeons pub has been a major issue among residents for the past two years, with no one quite sure who the owner is.

But Coun Khan, who holds the housing and neighbourhood services portfolio on Blackburn with Darwen Council, said, "I am not the owner of this building and never have been.

"I have absolutely no interest, nor has any of my family, in this building whatsoever. I have no, and never had, any intention to buy it and turn into a Muslim school, as these posters claim. It is complete fallacy.

"The only interest I have had in this building is the awful state it has been left in. Hopefully, we will be able to take legal action soon. I have not applied for a grant to refurbish this building nor could I because it is not my building. Nor have I applied for planning permission of any kind for this building. Unfortunately, there are some people who want to make mischief to enhance what I can only presume are their political ambitions.

"The people who produced this leaflet are telling lies.

"These liars have done this in a cowardly, anonymous manner otherwise I would have no hesitation in taking legal action against them. I challenge them to come out into the open and make these preposterous allegations instead of conducting a secret smear campaign."

Council chief executive Phil Watson said: "Planning permission was granted for installation of new shop front, security shutters, single-storey side extension, fire escape staircase and erection of vertical fencing to boundary walls, in July 2002.

"This use was never taken up and no subsequent applications have been made."

Since Coun Khan spoke the empty building has been virtually destroyed by fire.

Twenty firefighters and police attended the fire the blaze which was being treated as deliberate.

A thirteen-year-old boy was arrested in connection with the fire and later released without charge.

The first floor and roof of the pub were destroyed in the fire and flames were billowing from windows when crews arrived. Station officer Aden Fortune said: "The fire had taken hold of the first floor and spread to the eaves. We are treating the fire as suspicious and deliberate."