THE company behind the regeneration of East Lancashire's housing is to quit Pendle because it is too far out of the way.

Elevate East Lancashire is moving its head office to Accrington, after chief executive Max Steinberg decided it was too far away from good motorway links.

Today, Pendle's civic leaders said they were disappointed' at the decision and said the borough offered excellent opportunities for business.

Elevate's current home is inside the Linden Business Centre, behind Colne Muni. The company underwritten by five of East Lancashire's six councils has been based there since 2003 when it was created by Government to tackle chronic poor housing across the area.

But now it has earmarked nearly £200,000 for its move to the Globe Centre in Accrington. That money forms part of the £2.336million the company has spent on central costs, around five per cent of the budget of £42million the Government gave to East Lancs to be spent this year.

It has taken out a 10-year lease on the Accrington site, close to Hyndburn Council's head office, even though funding has only been secured for Elevate until 2008. An announcement on funding through to 2010 is due next month.

Mr Steinberg said: "When East Lancashire gained a pathfinder, Blackburn with Darwen Council dealt with legal and staffing issues, while Pendle dealt with accommodation.

"We feel our current base is too far out of the way. We want to be in a more central position in East Lancashire, and Accrington is perfect.

"It is close to the M65 and the M66 so offers ideal transport links. The deal we have struck with the Globe represents excellent value for money, and we can break it after five years should the Government decide not to pursue with the programme.

"But they have said they intend it to be a 15 year programme, and it needs to be that or it won't make the difference it is supposed to.

"I have told Government I have worked on five year projects before which haven't made an impact, so we need to keep going for 15 years."

Pendle Council leader Coun Alan Davies said he would encourage businesses to take a serious look at Pendle.

He said: "I'm disappointed. It's another example of Pendle being on the edge of everything happening East Lancashire. We were quite pleased when we got it located in Pendle.

"Despite their move, Pendle has probably got the best environment and support for business in East Lancashire and I would encourage everyone to come and set up in business here. I know some great premises in Linden Business House which Elevate has just vacated."

Coun Tony Greaves, the council's executive member for housing market renewal echoed Coun Davies' disappointment.

He said: "It won't alter the fact that we will continue to discuss housing renovation issues with them in a vigorous but constructive way to try to achieve benefits for Pendle.

"This sums up our concerns about the attitude of Elevate. When he says too far what he means is too far from Blackburn. Backburn is getting more than its fair share out of Elevate for funding. Burnley and Pendle are missing out as a result."

Town centre regeneration officer Ian Stackhouse said the priority was to get Elevate's offices in Colne occupied again.

He said: "We are sorry to see them go from Linden House. We will do whatever we can to assist the owners and agents to try and relet that space and include the details in our property register to make people aware it is available."