THE GOVERNMENT has pledged a £30million ‘lifeline’ to areas across the country that have been stranded by the scrapping of housing regeneration cash.

The investment was welcomed by a Conservative MP, but dismissed by Labour as ‘worse than a drop in the ocean’.

East Lancashire was one of the parts worst affected by ministers’ decision to cancel the multi-million pound Housing Market Renewal scheme last year.

The project targeted some of the most deprived areas, rebuilding and refurbishing housing to try to stimulate demand, but critics said it was not cost-effective.

Its demise has left some projects part-completed and threatens to blight areas where demolition has already started.

Council bosses recently estimated that £20million would be needed in East Lancashire alone just to bring the scheme to ‘an orderly end’.

Tory Housing Minister Grant Shapps said the extra money would be allocated to five areas, including East Lancashire, with councils asked to bid with proposals to ‘help abandoned families and allow the local leaders to get regeneration back on track'.

Cash-strapped local authorities will be asked to match any government grant through their own funds.

Pendle MP Andrew Stephenson said: “I welcome the announcement from the Government of this extra cash.

“The previous Government’s HMR programme was hugely wasteful and did little to address local housing problems.”

But Coun Andy Kay, in charge of resources at Blackburn with Darwen Council, said: “The amount is appalling.

"It’s worse than a drop in the ocean and won’t go anywhere.”

Housing Market Renewal was launched in 2002 in nine ‘pathfinder’ areas across the country.

To date, more than £600million has been invested in East Lancashire.