A NEW Mediterranean-style cafe has opened in Blackburn to help kick start the regeneration of part of the town centre.

Bailey's on Penny Street has opened thanks to council work worth nearly £4,000.

The council are giving the financial support as part of their lease plans to attract small businesses into the area and help with initial start up costs for local business.

The council-owned site, previously Kenyon's bakery, had been closed for refurbishment for 18 months.

And the opening of the cafe has come just a week after traders called for more work to be done to improve the Penny Street area of town.

Shopping centre owners Standard Life has also been urged to more work on the Lord Square shopping area in a bid to keep pace with council improvements to Church Street and the regeneration of other parts of the town.

Owner Douglas Power, 29, of Ennerdale Avenue, Blackburn, said: "Although it has cost me £20,000 the council have helped with building work like toilets and waste systems. I have also negotiated three months rent free which helps so much when you are getting established."

The ex-milkman decided to turn his hand to catering thanks to a push from his mother who said the cafe could be a "gold mine". And now the cafe has taken his mum's maiden name - Bailey.

He said: "There are so many opportunities out-of-town but this financial aid tipped the balance for Blackburn and convinced me to keep my business here.

"Any plans to modernise the town centre can only be a good thing."

Coun Gail Barton, executive member for resources, said today: "We are delighted to see a local person opening a new business in this part of town.

"The premises had been empty for over a year before the council modernised them by carrying out structural repairs.

"Blackburn town centre is certainly improving but with leases like this one for ten years, it shows it is not just big high street stores that can have a place in the regenerated town but also local traders too who see the opportunities offered to them." Terry Longden from the market department of Blackburn with Darwen council explained that basic improvements can be made on properties leased out for business purposes to "help businesses get started".

Douglas has also benefited from the council's scheme to get long-term unemployed back in to jobs.

He said: "In employing two members of staff who have trouble getting jobs, the government pays half their weeks wages so it's like getting one member of staff for free.

"It all goes to help in the early stages."

Councillors have been working to encourage shoppers to stay local.

The centre has already benefited from the rebirth of the former Woolworths building as TJ Hughes and the pedestrianisation of Ainsworth Street.