BLACKPOOL Council has acted swiftly to close a loophole which has allowed people to paint the town red at the local authority's expense.

An investigation has revealed that the redecoration grant system has been open to abuse with unscrupulous tenants cashing thousands of pounds worth of council cheques designed for wallpaper and paint -- but actually using the money on spending sprees.

Last year £75,000 was paid to new and existing tenants to improve the state of their homes. But some party-loving tenants were in fact signing up for properties and then moving out as soon as they received the payment -- if in fact they moved in at all -- and cashing in. The inquiry also showed a lack of staff meant the use of the grant money could not be properly monitored.

Cheques are currently issued four weeks after the tenant has moved in. Now the council is to change the system by which its tenants in flats and houses get grants for re-decorating their properties.

And housing officers are proposing a voucher scheme in conjunction with major DIY outlets such as B and Q, Homebase and Focus.

The stores have agreed to take the council vouchers without charge and ONLY exchange them for paint and wallpaper with no cash refunds given.

The stores will then invoice the council returning the voucher to the town hall.

Next year Blackpool Council proposes to allocate £82,000 for decoration grants and a housing spokesman said:" Changing from grants given in a cheque form to this voucher format will tighten up the whole system. Honest tenants have nothing to fear. It is only those who have -- or who want -- to abuse the system who will find this is no longer an easy way to get their hands on quick cash."