THE leader of Lancashire County Council has threatened to reduce co-operation with other East Lancashire authorities in a row over regeneration.

Councils are at loggerheads over what form new Local Enterprise Partnerships (LEPs) should take.

County council leader Geoff Driver favours a Lancashire-wide LEP and he has threatened to quit two East Lancashire regeneration bodies if the area’s six borough councils press ahead with plans for a Pennine Lancashire organisation.

LEPs have been launched by the coalition Government to help bring investment to areas, replacing development agencies.

The partnerships’ key role is to bid for funding for their area.

Coun Driver said: “Our position has never changed and that is that we believe Lancashire is best served by one LEP for the county.

“I am confident that a Pennine Lancashire LEP is not the right thing to do to develop the area.”

Coun Driver said if ministers decided to approve a Pennine Lancashire LEP, County Hall would withdraw its membership from the PLACE committee of council chiefs who discuss ways of regenerating East Lancashire, and from Regenerate Pennine Lancashire.

But he vowed that the county council’s economic responsibilities in the east would be unaffected.

Blackburn with Darwen Council leader Kate Hollern has urged County Hall to co-operate on LEPs in a bid to appease government ministers, who are understood to be losing patience with the infighting in Lancashire.

In an email to Coun Driver, seen by the Lancashire Telegraph, she said she recognised that the county council was a ‘key partner’ in regeneration.

And Coun Charlie Briggs, leader of Burnley Borough Council, said: “We are continuing, along with our neighbouring authorities and MPs, to press the Government hard to approve a Pennine Lancashire Local Enterprise Partnership.

"Our case remains an extremely strong one.”

A Department for Business spokeswoman said ministers were still deciding on the LEP options for Lancashire.