MORE than 30 people were led to safety after a huge fire engulfed a Blackpool promenade amusement arcade.

The blaze at Grab City, Central Promenade was discovered at 00.35am on Monday morning by police who alerted fire crews.

"Initial indications were that persons were trapped on the premises which by this time were well ablaze," said a Lancashire Police spokesman.

Firefighters forced their way into the back of the building and rescued the arcade's manageress who was unhurt.

A further 30 people were moved from nearby flats, first to the local McDonald's's restaurant and then to a hotel where they spent the rest of the night.

Residents of the Pump and Truncheon pub close by were also moved.

Grab City was completely destroyed in the blaze which raged for several hours and damaged adjacent buildings.

The fire was so severe that an emergency plan, codenamed Operation Merlin, was put into action by Lancashire Fire and Rescue.

At its height 15 fire crews were involved in tackling the blaze and the area was heavily affected by smoke and steam. Officers were still damping down at 8.30am.

The emergency prompted the closure of Bonny Street, Chapel Street and New Bonny Street, along with the southbound carriageway of the prom.

Diversions caused a build-up of traffic in the area and police warned that roads could be closed for several more hours.

Tram services were also temporarily suspended.

Earlier today a police spokesman said it was not yet known if the fire was suspicious.

A Blackpool Borough Council spokesman said roads: "After the fire was extinguished the council's building control officers examined the building and found parts of it to be unsafe.

"Therefore the decision has been taken to prevent traffic from travelling southbound on Central Promenade between the Coral Island traffic lights and the Chapel Street traffic lights until the area has been made safe.

"The advice from Blackpool Council is that motorists should avoid the town centre area and take alternative routes."