CONSERVATION Group English Heritage is set to award almost £350,000 in regeneration grants to two East Lancashire towns.

The bulk of this investment, totalling £282,000, will go to Hyndburn Council to regenerate an historically important area next to the Leeds and Liverpool Canal, recently awarded conservation area status.

The project, which is dependant on match-funding by the local authority, will primarily focus on revamping a derelict navigation warehouse and hotel which dates back to the 1830s, possibly into offices.

An application has been submitted for government funding to help towards the match funding and money from the council's own resources will also be used.

Brendan Lyons, head of planning at the council, said: "This is potentially fantastic news for the conservation area but it does rely on match funding which we are waiting to hear about."

British Waterways have also being awarded funding by the North West Development Agency for a study on the length of the Leeds and Liverpool Canal in order to identify specific areas for improvement.

A second Heritage Economic Regeneration Schemes grant for £60,000 has also been awarded to the market town of Barnoldswick in order to renovate historical buildings in the centre as part of the tourism strategy there.

The grants are part of a £9million national package to transform 53 decaying areas where the economic base has declined.

They are match-funded by local authorities and concentrate on bringing declining areas back to life by encouraging investment and tourism.

This is done by converting derelict buildings into new homes and businesses as well as restoring high streets and shops

Money can also be spent towards improving parks and public spaces.

Sir Neil Cossons, chairman of English Heritage, said: "We are delighted to announce the latest of these successful schemes.

"It is appropriate to say that we continue to be proud of the very real difference they make to towns and villages all over England.

"HERS funding becomes a catalyst for regeneration reversing the decline of an area and stimulating it towards self-help and inward investment."

The grants, once confirmed, will be used to fund three-year programmes of regeneration beginning almost immediately.

English Heritage is a Government department which looks to inject funding into the regeneration of decaying towns throughout the country.

This relates to traditional English heritage such as castles but also to more general older buildings within towns in need of regeneration.