THE government is threatening to give Burnley council an official warning for not spending enough money on economic regeneration.

The borough failed to meet key performance targets after winning £19 million from the government's challenge fund.

The money is meant to pay for a host of economy-boosting schemes over the next six years, but the government says cash needs to be spent more quickly.

The environment minister has the power to withhold payments or even demand repayment of grants if he is not satisfied with the council's performance.

Urban regeneration chief, Mike Cook, told councillors: "The programme needs urgently putting back on track."

He said people needed to understand the importance of meeting quarterly targets, and that better supervision of schemes was needed.

"The programme only just avoided being officially warned."

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