THOUSANDS of planned jobs, transport improvements and millions of pounds of inward investment face the axe or long delays after a huge funding blow.

The redevelopment schemes were set to revitalise East Lancashire with the aim of transforming the quality of life for its residents.

But leaders have been told that only ‘contracted’ developments will definitely go ahead following the scrapping of the North West Development Agency by the new Government.

Blackburn MP Jack Straw said the decision was ‘deeply destructive’. Other local leaders described it as ‘bleak’ and ‘depressing’.

However, council chiefs have vowed to fight hard to save flagship plans designed to tackle deprivation and create high-end jobs.

Among the projects at risk are:

  • The Knowledge Zone in Blackburn’s ‘Cathedral Quarter’, planned to be bankrolled by £2million of NWDA cash
  • A 4,000-job business park in Whitebirk, Blackburn, paid for by £6.5million from the agency
  • Barrow Brook business park in Clitheroe
  • The multi-million pound Burnley Bridge business zone at junction nine of the M65
  • The regeneration of Burnley’s historic Weavers’ Triangle
  • The Todmorden Curve which would create a direct rail link between Burnley and Manchester
  • The renovation of Rawtenstall’s dilapidated Valley Centre

The funding blow, delivered to East Lancashire’s regeneration leaders in a meeting with NWDA bosses, was described by one MP as a ‘deeply destructive ideological move’.

It follows Chancellor George Osborne’s axing of the NWDA, which funds regeneration projects, by March 2012, along with a £52million budget reduction for this year.

That led to all funding being reviewed - and to East Lancashire’s £20million-a-year NWDA grant being all but torn up.

Bosses from East Lancashire’s six councils are now scrambling to try to save key projects meant to improve the area’s prosperity.

Some have suggested that major schemes could be delayed or completed over a longer period of time in a bid to save them.

But they must wait for a Government White Paper in October to see what form new ‘local economic partnerships’ will take and how much of a planned £1billion ‘regional growth fund’ from Whitehall East Lancashire will get.

Michael Ranson, Conservative leader of Ribble Valley Council and chairman of Regenerate Pennine Lancashire, which is responsible for East Lancashire’s NWDA money, said: “We don’t know how this will affect individual projects but my gut feeling is that we will have to look again at what we are trying to fund.

“The key thing is ensuring that investment cuts are kept to a minimum.”

Blackburn with Darwen Council chief executive Graham Burgess said he would fight to ensure East Lancashire lobbied the Government for regeneration money.

He said: “We have a strong track record on levering investment into the area and remain positive that we will be able to secure funding required.”

The NWDA’s meeting with East Lancashire regeneration leaders will be followed up this week by a formal letter informing them of cuts to projects that have not been contracted.

Leading East Lancashire figures from the Labour Party, which created the NWDA in 1999 to regenerate deprived areas and support economic growth, attacked the move by the Conservative-Liberal Democrat coalition Government.

Blackburn MP Jack Straw said: “This is a deeply destructive ideological move and there is no doubt it will set back economic development in East Lancashire.

“It is depressing news but I will do my best to work with the authorities to minimise the damage.”

Julie Cooper, Labour group leader on Burnley Council, added: “These projects certainly look to be at risk and this is very bleak news indeed for Burnley and East Lancashire.

“I do not expect the Weavers’ Triangle or the Todmorden Curve to make any progress under this Government.”

East Lancashire Chamber of Commerce boss Mike Damms said: “This means we are stuck where we were - East Lancashire remains woefully short of investment.”

The NWDA said yesterday: “The coalition government has asked the NWDA to find savings of £52million from this year’s budget, which is already over 90 per cent committed.

“Any North West programme or project that has not had NWDA funding contracted or has yet to apply for funding for this current financial year will not secure funding from the agency.”

The reduction in NWDA funding is the latest cut to hit East Lancashire since May’s General Election and the new Government’s ‘austerity measures’.

East Lancashire was told that its £50million-a-year pot to regenerate run-down housing will be slashed.

And earlier this month Blackburn with Darwen Council announced plans to close a leisure centre as part of £4million funding cuts.

Other councils could follow suit.

DEVELOPMENTS THAT COULD BE AFFECTED

High-tech business park beside junction six of the M65, Whitebirk, Blackburn

Proposed NWDA funding: £8.5million out of a total of £23.5million between 2011 and 2013.

Prospects: One of the most ‘strategically important’ schemes in East Lancashire, it is likely to be high up the list of ones that could be saved. Blackburn with Darwen Council chief executive Graham Burgess said a ‘Pennine Lancashire local economic partnership’ could still obtain the cash directly from central government. If not, it could be delayed by several years.

Knowledge Zone, Cathedral Quarter, Blackburn town centre

Proposed NWDA funding: £2million in 2010/11 out of a multi-million pound budget.

Prospects: Like Whitebirk, this education and employment area could be stretched out over more years to keep it on track, bosses hope.

Barrow Brook business park, Clitheroe

Proposed NWDA funding: £3.3million between 2010 and 2013 out of a total of £11million.

Prospects: Lancashire County Council and Ribble Valley Council were expected to put in more than the NWDA, with only £500,000 set to come from the private sector. Ribble Valley Council leader Michael Ranson said other ways of developing the land would be sought.

Weavers’ Triangle, Burnley

Proposed NWDA funding: Unspecified ‘gap’ funding over three years.

Prospects: The site is being marketed for the private sector after Burnley Council bought up buildings following a £4.9million NWDA grant last year. Dependent on developers moving scheme forward. However, lack of NWDA funding could make it difficult to attract partners.

Reinstatement of Todmorden Curve, linking Burnley directly to Manchester by rail

Proposed NWDA funding: £6million agreed ‘in principle’ for work from 2012 to 2014. The Government put the total cost of reinstating the line at £7million.

Prospects: The project is still at ‘feasibility’ stage - a report and preliminary work to look at how worthwhile it would be. Public money for rail work will not be needed for another two years, by which time a bid for public cash may prove successful, said Burnley Council chief executive Steve Rumbelow. The NWDA considers linking Burnley to Manchester important for economic growth.

Adrenaline Gateway, Rossendale

Proposed NWDA funding: £2.5million out of total £3.5million for 2010 to 2013.

Prospects: Money would fund an ‘extreme sports facility’ and another mountain bike trail at Lee Quarry, near Bacup, following extensive work in previous years. Rossendale Council leader Tony Swain said the site could ‘stand on its own two feet’, suggesting it may not be a priority for future funding.

Valley Centre, Rawtenstall

Proposed NWDA funding: Unspecified amount between 2011 and 2014.

Prospects: Coun Swain said the dilapidated shopping centre needed ‘all sorts of work’ doing on it, for which public money was needed. It is likely to be among the schemes on a priority list for central government funding.

Burnley Bridge business park, junction nine of the M65

Proposed NWDA funding: Around £3.5million between 2010 and 2013, along with a similar amount of European funding and around £22million from private developers.

Prospects: The scheme is a key ‘strategic development’, expected to create thousands of jobs. However, it remains agreed in principle but not contractually approved, and work has yet to begin.

SCHEMES EXPECTED TO BE UNAFFECTED

Business grants, including £2million to Rolls-Royce in Barnoldswick for fan blade technology.

A £250,000 grant to the university centre in Burnley.

£1.5million in various education schemes.

£500,000 to regenerate area around Freckleton Street, Blackburn.

£773,000 to market the former Michelin site in Burnley.

£1.7million for Nelson town centre.