STANDARD Life put its shopping centre in Blackburn up for sale to cover the cost of people cashing in endowment policies, councillors have been told.

The Edinburgh-based firm has already begun showing prospective buyers around the centre after announcing it was going to sell it last month.

No reason was given at the time for the sale, although council officers told a meeting of the Blackburn with Darwen Council licensing meeting -- which discussed possible developments in the town centre -- that it was because the firm needed to release cash to ensure it could meet endowment payouts.

The firm, marketing and tourism manager Clare Turner told the meeting, had watched its endowment surplus drop from £8billion to £2billion as a result of struggling stock markets and needed to release some cash from other investments. A lot of its investments are in shares, which can be cashed in quickly if there is a sudden surge in people cashing in pensions and other policies, but the stock market crash has reduced the value of those shares. The sale of Blackburn shopping centre will release cash to pay off claims if they come in.

"It is not a criticism of the town at all, to say they are leaving because the town isn't doing well is totally wrong," Clare Turner said.

"Because of the stock market, their endowment money has fallen from £8billion to £2billion and they need the money from this sale to cover that endowment loss."

Steve Hoyle, assistant director of regeneration at Blackburn with Darwen Council, said: "We've been told that Standard Life have been showing potential buyers around and we are hoping that we will be able to talk to whoever becomes the preferred buyer.

"We want to show them our town centre strategy and explain what part they need to play as the owners of the shopping centre.

"The council does have a stake in the shopping centre, but not a big enough one to veto any deal."

He added: "Action on Lord Square is a big priority because that has the potential to hold up the redevelopment of the whole town centre."

Standard Life had redeveloped most of the shopping centre, but said it could not justify the £18million anticipated cost of redeveloping Lord Square.