THE government has agreed to pay Burnley for the cost of setting up the Task Force inquiry in last summer's serious racially motivated disturbances in the town.

Home Office Minister John Denham, who visited Burnley last week, has written to the council saying the government was "happy" to reimburse the sum of £77,000.

The news was welcomed at last night's meeting of the council executive.

Council leader Stuart Caddy attended the meeting only three hours after being released from hospital after a knee operation.

Walking with the help of crutches and with his knee heavily bandaged, Coun Caddy said he welcomed the news, which helped with the budget process taking place at the meeting.

He added: "I now look forward to more support coming from the government in the coming months with regard to the Task Force recommendations."

In his letter to Coun Caddy, who served on the Task Force, the Minister said: "The government is very grateful to Lord Clarke (the independent chairman) your council and the people of Burnley for responding in such a positive way to the problems of last summer and there is no doubt that Lord Clarke's report will provide a solid foundation for the work ahead in Burnley."

He added: "The Government, with the Home Office in the lead, is committed to working with local authorities and local communities to build cohesive communities and I hope the offer of reimbursement will go some way to reassuring the council and people of Burnley of this."