REGENERATION chiefs still reeling from the announcement of 550 job losses at the town's biggest employer believe the bombshell may ultimately help them in their bid to secure £13million of government money.

Just a fortnight before Leoni Wiring announced it was to close its Accrington factory council bosses submitted a multi-million pound bid for Single Regeneration Budget cash.

The money would be spent improving living conditions in and enticing new businesses into several Hyndburn wards, including Spring Hill, which has the Leoni building within its boundary.

Nigel Rix, director of Hyndburn FIRST, the company created by Hyndburn Council to promote regeneration to the borough, says the announcement by Leoni, formerly Lucas Rists, serves to prove that the SRB money is needed.

He said: "SRB money is designed to be used encourage new businesses to set up in the area, and this is something west Accrington needs desperately following this jobs blow.

"These job losses will serve to reinforce our claim for cash to regenerate the area."

"With one announcement, Leoni have increased our unemployment levels in the borough by 50 per cent.

"Hyndburn's economy relies so heavily on manufacturing and that is why we are suffering now.

"The SRB money would be used to encourage new businesses from other sectors of industry, giving us a more diverse economy." The bid being made is for the sixth round of cash being distributed by the government. Hyndburn last secured money during the first round, grabbing £3.8million which was used to regenerate the Globe Centre, Accrington.

More than 1,000 people now work there and the site has attracted more than £30million from the private sector.

Mr Rix added: "We are asking for a lot more money here and we are sure we could attract the same investment again."

Council leader Peter Britcliffe said: "While this is a devastating thing to happen and one we would not have asked for to promote our SRB bid, it proves how much the cash is needed.

"Whereas it was important before, that money is now vital if we are to find any silver lining in this black cloud."

Hyndburn MP Greg Pope said: "The latest job losses reinforce the case for SRB money and illustrate why it is necessary.

"We have a very fragile economy across East Lancashire. That is shown by these job losses and they are an indication of why we need a range of regeneration measures including the SRB money and I shall be making that point to Trade and Industry Secretary Stephen Byers today and to other ministers at every opportunity."