A SPENDING freeze on the transfer of council houses to a public company looks set to be lifted by town hall bosses following assurances from the government.

The move comes after councillors were told that action was being taken to solve the £21million debt problem which is holding up the hand-over of the homes.

The council imposed a freeze on spending amid concern about the debt, caused by a shortfall between the value of the houses and the council's mortgage liabilities.

But Burnley MP Peter Pike has received assurances from the newly-appointed Housing Minister Nick Raynsford that the proposed government consultation paper on solving the residual debt problem will be issued imminently.

He met with council officers and leading councillors at Burnley Town Hall yesterday to pass on the minister's promises.

A report will be presented to the next meeting of the council's housing committee on August 18 when councillors will be asked whether they wish to reconsider the spending freeze decision taken at the last council meeting.

Council leader Stuart Caddy, who has said he was not prepared to risk council tax payers' money without a written government guarantee, thanked the MP for helping to resolve the problem.

He added: "I am very pleased to hear about the minister's assurance and look forward to seeing written confirmation.

"I am very keen to see the transfer of Burnley's housing stock to Burnley and Padiham Community Housing proceed so that it can be completed before the end of March 2000.''

Tenants voted nine to one in favour of the transfer of all the 5,600 houses in a £74 million deal.

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