THE CONTROVERSIAL closure of Blackburn town centre road has been shelved after an outcry from traders.

Shop owners had campaigned against plans to shut Railway Road to through traffic, claiming it would damage trade by preventing shoppers from driving into town.

Now the council’s new Labour leadership has decided not to proceed with the move.

But its decision has caused more controversy after it was revealed EU funding, earmarked for building a new bus interchange outside the station, had been turned down as a result.

A bid had already been submitted for the European Development Fund grant, which would have paid for covered bus stops outside the station and realigned Railway Road.

But the Labour leadership has decided not to accept the £500,000 grant, because it would have meant the cash-strapped council had to pay £150,000 out of its own funds.

Regeneration chief Dave Harling said the total amount needed from the council would have been £400,000 once money it was given by developers was taken into account.

He said: “A bid was submitted, and we had until the middle of last week to accept it. On the face of it, how could I justify £900,000 for six bus stops to people?”

Conservative Coun Alan Cottam, who was in charge of regeneration before last month’s power switch, said: “I can’t believe in such tight times we are turning down EU money that is like gold dust. We should be ashamed.”

The masterplan would have required the closure of Railway Road as part of the redesign.

Darwen Street jeweller Phil Ainsworth, of the town centre partnership, said: “I am delighted for everyone this side of town that Railway Road won’t be closed.

“Having said that, I am disappointed that we have turned down EU money to improve the area. I am sure if we had all sat down together we could have found a solution.”