TOP Labour councillors have threatened to quit the party if a rebel councillor is allowed back in.

Ex-education boss Coun Mahfooz Hussain has applied to have his party suspension lifted, 18 months after quitting the ruling group on Blackburn with Darwen Council.

He was one of six Asian councillors who quit amid allegations of racism in the wake of the 2004 local elections, in which former council leader Sir Bill Taylor lost his Audley seat.

They formed an independent group, claiming they had been blamed for Sir Bill losing to an Asian Lib Dem candidate.

Had the six teamed up with Conservative and Lib Dem parties, Labour could have been stripped of power.

Following the publication of an independent report into the claims that the Labour group was racist --something the report said could not be proved -- five of the six rebels, including Mayor Coun Yusuf Jan-Virmani, successfully applied to rejoin the party.

Coun Hussain, who represents Bastwell in Blackburn, was suspended after he walked out, and has now re-applied.

He has been blamed by senior Labour councillors for the walkout, which followed his de-selection as education executive member.

At the time three of the other five -- Couns Salim Mulla, Parwaiz Akhtar and Iftakhar Hussain -- returned to the party, one executive member said 'there would be a riot if Mahfooz returns.'

A spokesman for Labour Party North West said: "A panel will be convened to decide if the suspension should be lifted. The local Labour Party group will be allowed to make representations."

One senior Labour councillor said: "An all-out walkout is being talked about if Mahfooz is allowed back. It's possible enough would walk out to form an independent group admin-istration. It includes very senior members of the executive board. Many of us are still angry at the way he behaved. He nearly cost the party power."

It is understood Blackburn MP Jack Straw, credited with brokering a deal to let the other five return, is involved in discussions about the final rebel's return.

Today, Mr Straw said he had 'no comment' to make.

Council leader Kate Hollern would only say: "We have not yet decided what, if any, representations we will make."

Coun Hussain could not be contacted for comment.