A CONTROVERSIAL £50million bus lane scheme to link Blackburn, Darwen and Hyndburn could be axed by the new government.

The scheme was only allocated funding in March, but may be axed by the Conservative and Liberal Democrat coalition as ministers look to slash spending.

Council chiefs in East Lancashire admitted the situation was uncertain, but said they hoped the scheme's focus on public transport would mean ministers were more likely to allocate cash to it.

Pennine Reach was approved in March in the small print of Labour Chancellor Alistair Darling’s budget.

A new bus lane would be built linking Blackburn, Darwen and Hyndburn, along with two new bus stations and improvements to road junctions.

The project has prompted a wave of opposition, and any funding problems will come as a relief to campaigners.

Mike Lee, Conservative leader of Blackburn with Darwen Council, said: “We have not heard anything yet, but I do know it is a more favoured scheme because it is based around public transport.

“Until everything is looked at we just don’t know but we are hopeful, and among civil servants it is favoured.”

Blackburn with Darwen Council chief executive Graham Burgess added: “We have been given no real reason to worry, but we will know more soon.”

Currently, Pennine Reach is at the ‘scheme entry’ stage with the Department for Transport, meaning work is scheduled to start in April next year and could be completed by 2014.

On June 22, Chancellor George Osborne will deliver his emergency budget, which could see the scheme axed altogether.

Tony Melia, deputy leader of Blackburn with Darwen Council and a long-time opponent of Pennine Reach, said: “My suspicion has been for a while that there’s no money left for schemes like this.

“Until we hear otherwise, I would have thought there’s a fair chance it could be cut.”