REGENERATION leaders are set to apply for an East Lancashire enterprise zone - after the Government turfed out a £22million bid to create 3,000 jobs.

Bosses were today told by the Department for Business that four separate applications - covering Blackburn, Rawtenstall and Burnley - had been knocked back.

In the North West, schemes across Greater Manchester and Merseyside were approved but none in Lancashire.

It is hoped East Lancashire can be named one of the Government’s new enterprise zones, with reduced business rates and more lax planning rules.

But Chamber of Commerce chief executive Mike Damms has warned the area faces an uphill struggle without a local enterprise partnership (LEP) to attract Government funding.

Lancashire has yet to agree a replacement for the North West Development Agency, with political leaders at odds over the best approach.

Mr Damms said: “There is a real danger that without a LEP, things could continue to go against us with regional growth fund and enterprise zone bids.

“I thought we could have had two LEPs, one for east and west, six months ago but that has not happened.”

Despite Lancashire still being without a LEP, Regenerate Pennine Lancashire boss Steve Hoyle has begun drawing up plans for an enterprise zone bid.

Any bid is likely to include four or five sites covering a total of 100 hectares.

The regional growth fund announcement ended the hopes of grants totalling £22million for Pretek Precision Homes and the Cathedral Quarter in Blackburn, Rawtenstall’s Valley Centre and the Burnley Bridge business park, off junction nine of the M65.

However, Burnley Bridge backers Burnley Council and developer Eshton hope the site can go ahead with European money alongside private cash.

Council director Mike Cook said: “We are confident that the scheme will get on site on the same timescale.”