EAST Lancashire MPs have welcomed the government's announcement of a £2.66million kick-start to the redevelopment of East Lancashire's decaying and derelict homes.

They are confident that the cash means that local councils' £670 million bid for a ten-year programme to transform large areas of semi-derelict homes will be successful.

Announcing the cash, Cabinet Minister Stephen Byers made clear that the money was just the first stage of a major investment and that Rossendale, originally missed out of the "Pathfinder'' area earmarked for the extra help, would be included. The details of the final cash settlements for the next three years are being thrashed out with the treasury before the announcement of the comprehensive spending review in the summer.

But senior government sources indicated that the bid by Mr Byers' department of Transport, Local Government and the Regions for hundreds of millions of pounds to tackle poor housing in East Lancashire and eight other areas in England had been very favourably received and was likely to succeed.

The cash announced yesterday is to flesh out plans for housing renewal in Blackburn, Hyndburn, Burnley and Pendle - and now almost certainly Rossendale as well.

Up to £750,000 can be used for immediate repair and refurbishment projects.

Rossendale and Darwen MP Janet Anderson said: "I am absolutely delighted. I am sure that we will now get the money we need to tackle the problems but I will be keeping up the pressure on ministers."

Burnley MP Peter Pike said: "The cash for planning and preparation is very welcome but I shall be meeting Treasury Chief Secretary Andrew Smith next week to make the case for East Lancashire getting the full £670million they have bid for.''

Blackburn MP and Foreign Secretary Jack Straw welcomed the announcement as good news for his constituency and homeowners in low-demand housing.

Pendle MP Gordon Prentice said: "This is welcome recognition that East Lancashire, including parts of my constituency, have major housing problems."

Hyndburn MP Greg Pope said: "I am confident that East Lancashire will get the money it needs from the government in the summer and that Rossendale will be included in the scheme."

Coun Mohammed Khan, executive member for housing and neighbourhood services at Blackburn with Darwen Council said: "The Housing Renewal Fund is a tremendous boost."