A COUNCIL leader today pledged to tell cash cynics the truth about grant allocation in Burnley in the wake of the riots and insisted: "We are being fair."

Coun Stuart Caddy said one of the biggest lessons learned from the racially motivated troubles was that people in some parts of the town believed funding was being targeted to Stoneyholme and Daneshouse, where Asian communities lived.

He stressed that money was not being put into just one area, but said the task force set up to investigate the trouble would be pressing for a change in government policy so that more money could be spread around the town.

And he said that the council was aiming to improve its communication with the public so that they were more aware of where money was being spent.

There was no trouble in the town last night, but police are still hunting the driver driver responsible for mowing down a pedestrian in a racially motivated attack on Tuesday night --and have warned he could face a charge of attempted murder.

A 17-year-old local white youth from the Belvedere area of Burnley is recovering in hospital after sustaining a double fracture to his leg in the incident in Colne Road. Prime Minister Tony Blair has condemned the "hideous influence" of the British National Party and said there could be no excuse for the racial violence in Burnley.

Quizzed about recent rioting in East Lancashire he told MPs in the Commons: "I agree entirely about the hideous influence of organisations such as the BNP which do nothing but try and stir up racial hatred in our communities."

Coun Caddy called on the Government to send people to work in Burnley and help tackle the problems of poverty, poor housing and deprivation. He said: "We will be working together, united to put Burnley back on the map where it belongs to be."

He said the council had received £58.5 million in investment over the past seven years and more funding was on its way.

He said that people had told him that they paid £7-900 council tax to the local authority and that they felt the money was not being spent in their areas.

He said government funding was based on the 1991 census which identified Stoneyholme and Daneshouse in the top 20 of deprived areas in the country, but changes needed to be made so that other areas in need could receive more help.

He said in one year in the early 1990s Burnley received £19.7million, of which £4.5million was spent in the Stoneyholme and Daneshouse area.

But he said people only remembered the £4.5million figure.

"Residents don't seem to know where the £15.2million has been spent. We have to put the message across clearly."

Council and business leaders in Burnley have united in a campaign to restore the town's image in the wake of the race riots, which were broadcast throughout the world.

Talks will be held in the next few weeks to draw up an action plan.

Ironically, the Burnley Marketing Partnership had just launched a 12 month advertising campaign at Manchester Airport with the message -- 'Burnley...the place to be.'