CUTS in council-backed health, pensioners' and community projects are on the cards in Burnley as development chiefs plan to put more money into high-profile town centre schemes.

Burnley's Challenge Fund is in financial crisis with managers trying to reconcile project bids worth more than £5 million with only £3.1 million available in the coming 12 months, the Lancashire Evening Telegraph can reveal.

That is likely to mean cuts almost across the board - with some community projects - such as Over 50s club support - slashed by up to 60 per cent, with redundancies also on the cards.

But the proposals - and no final decisions will be made until next month - won't stop new money going into town centre projects, as Burnley regeneration chiefs plan to put an extra quarter of a million pounds into the centre Action Plan.

The Action Plan - which includes major investment in the bus station, the Prestige site, Curzon Square new shops, Sandygate, Lodge Square off St James' Street and a major hotel and nightclub project at Proctors Mill in Hammerton Street - was officially launched at a special ceremony in the centre on Friday.

The cut-back proposals are already causing concern among councillors who say they will voice their anger when the issue is debated publicly.

But even a revolt by councillors is unlikely to save community project cuts - because the final say will rest with the Challenge Fund managing body, the Burnley Regeneration Forum on which councillors do not have the majority vote.

Regeneration chiefs have written to under-threat project managers saying they realise the anxiety caused to them and have held special surgeries to spell out the proposals.

But they have warned that some very hard and unpalatable decisions have to be taken. The Challenge Fund provides nearly £20 million of Government cash to lever in more than £120 million private funding over seven years for scores of job creation, training, town improvement, health, housing and community development schemes.

But there are set targets in terms of private funding to be attracted and jobs created which must be achieved.

While major centre developments attract massive private investment and European funding, services for the community do little to meet Government targets and that has made them vulnerable.

Managers say almost all 85 existing projects have been cut to some extent, because to fully fund the most vital would mean nearly half the remainder would be wiped out completely.

But in their letter to project leaders they warn: "If we don't keep on target with delivering these outputs, we run the risk of losing the whole programme." They say failure to meet targets could also jeopardise Burnley's chances of getting similar Government funding in future.

Today deputy council leader Rafique Malik said it was true major cuts were on the cards and additional money was earmarked for town centre projects.

"The town centre projects are crucial to the success of the Challenge Fund because they lever in huge amounts of private sector investment.

"It is one of the Government office's top priorities and we must support the town centre partnership."

He added: "Community developments such as the Over 50s clubs are also very important and we have asked officers to try to find any other avenues of funding them.

"But this year it seems that community projects will have to suffer."

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