A masterplan for the future of Accrington is in serious doubt as council bosses struggle to find the £150,000 needed for the project.
The plan, which has been described as the "blueprint for the survival of the town", would be drawn up by consultants.
It would aim to make Accrington a desirable location for visitors, businesses and residents.
Hyndburn Council is bidding for £75,000 from the North West Development Agency and £75,000 from the Government's Single Regeneration Budget (SRB).
It was hoped that if both bids were granted, work could start on the plan this year.
But now Hyndburn's regeneration manager, Nick Moule, said: "The SRB funding is very much in doubt.
"We have put our proposals to the SRB board but so far we have failed to convince them about the project.
"If we fail to get the funding then it is very unlikely that we will be able to develop the masterplan."
Council leader Peter Britcliffe said the masterplan was "crucial".
He said: "This plan is crucial to the future of Accrington and the development of the town centre.
"We need to convince the board how important it is that we get this funding.
"The masterplan is the blueprint for the survival of this town."
Peter Aspen, chairman of the Hyndburn Chamber of Trade, said: "I am very positive about Accrington, a lot of the empty shops are starting to be taken up, but the work that has gone on has to continue.
"The masterplan is very important because continuing regeneration gives people confidence in the town."
The masterplan would look to create a new identity for the town to make it unique in East Lancashire and it is hoped it would help to bring investment into the town.
Mr Moule said Hyndburn generally, and Accrington town centre in particular, were facing major challenges due to an increasingly competitive shopping environment with shopping patterns changing fundamentally.
He said: "The increasing shift towards city regions and the impact of out-of-town shopping centres are also impacting on traditional shopping centres such as Accrington."
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