THE Government will come up with a solution to Burnley's £20million headache which has put the planned transfer of the entire 5,600 home stock into limbo, says MP Peter Pike.

The council has halted spending on the £74million deal to hand over control of estates to private housing company Burnley and Padiham Housing, until the Government says it will meet the £20million shortfall between the selling price and the actual value of the houses.

Unless the issue is resolved, the deal will fall, leaving Burnley taxpayers to pick up the cost of the process, which is already running at more than £300,000.

A further £1million plus is needed before the transfer is completed.

Mr Pike, said he today faxed new housing minister Nick Raynsford on the issue.

"I am meeting council leader Stuart Caddy on Tuesday and trying to get an answer before then. But it will be difficult."

Mr Pike says while he believes the Government will deliver an acceptable solution to the problem, he understands Burnley Council's desire to get something in writing.

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