BURNLEY will spend another £265,000 on its housing transfer plans despite "niggling doubts" that it may not go ahead.

Council housing chiefs decided last night to resume major spending on setting up the sell-off of the town's entire council house stock to a privately-run company.

But there is still no cast iron guarantee the Government will meet the difference between the value of the houses and the higher price they must be sold for, to enable the housing company to be viable.

If the Government fails to underwrite the difference, Burnley council taxpayers could be left with a £2 million extra bill for setting up costs if the council continues spending.

The housing committee agreed a £265,000 spend and will again review the position when that cash has gone.

Councillors heard Government officials had said Burnley was being treated as a pilot area in the new stock transfer procedure and had already ironed out many uncertainties - without giving the total guarantee that all vital costs would be met.

They were told the council and the housing stock could be in a much worse position if there were further delays.

Council leader Stuart Caddy said: " We have a very difficult decision to make.

"I still have that little doubt at the back of my mind, but let us get it up and running despite the doubt."

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