AMBITIOUS multi-million pound plans to transform the heart of Blackburn town centre have been dealt a major blow.

National Lottery bosses have turned down a bid for more than £4 million to pay for a major revamp of the cathedral and the surrounding area.

Blackburn's business community had added its backing, bringing the total cost of the package to £12 million.

But town hall chiefs and church bosses have promised to carry on looking at ways to find money needed.

The aim is to link the cathedral to the rest of the town with a footbridge, new public square and the pedestrianisation of Church Street.

There are also plans to breathe new life into the derelict Waterloo Pavilions, build a small hotel, improve the main cathedral buildings and reconstruct the popular clock tower demolished 20 years ago. News that the Lottery's Millennium Commission has blocked the bid for funds in its early stages has come as a shock to leading church figures.

Cathedral Provost the Very Rev David Frayne said: "We are very disappointed that the Millennium Commission has not listed its proposals for further consideration.

"We are now seeking an urgent explanation since we had every confidence that all the conditions had been fulfilled.

"However, we continue to believe that the outline vision for the enhancement of the cathedral grounds can bring enormous, as yet unrealised benefits to the town centre."

The Very Rev Frayne has also promised the appeal to raise £750,000 needed to rebuild the cathedral's lantern tower will stay on course.

Council leader Malcolm Doherty added: "We will continue to work with the cathedral and other partners to carry on the successful redevelopment of the town centre.

"We now need to jointly explore what other sources of external funding might be available."

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