A community group in Burnley has turned down a youth and community hub, that was set to be supplied and financed by Depher CIC.

James Anderson the founder of Depher, a plumbing and heating repair community interest company that is known for helping people on low incomes by either subsidising repair costs or doing the work for free, recently admitted to fabricating some of the firm's stories.

Rosegrove Neighbourhood Watch, a community group that aims to reduce crime and run events in the area, says it was to receive a youth and community hub, worth around £4,800, from Depher.

After hours of meetings and receiving legal advice, the group has decided not to accept the hub, which was set to be delivered on Friday, May 24.

It has also said it no longer wants to have links with the firm.

A spokesperson said accepting the hub may have had a “detrimental impact on the community”.

A spokesperson for Rosegrove Neighbourhood Watch said: “After many hours of meetings and taking legal advice, Rosegrove Neighbourhood Watch, at present, cannot have any links with Depher Community Plumbing and Heating Support and will be refusing delivery of the youth and community hub this Friday, May 24.

“This has been a very hard decision for everyone involved and we are thankful for the advice, time, and support at this disappointing and stressful time.

“We are aware that [the hub] is a much-needed addition to our community, for all ages, but also agree that after consultation concerning alleged activities with Depher, taking delivery would have a detrimental impact on the community and our core values as a transparent community group.

“We do appreciate that formal due diligence queries will now be part of any further charity works with Depher and that may also take a while. While this is ongoing, we will not be taking our professional relationship further.

“Rosegrove Neighbourhood Watch will continue to raise funds and are hopeful that the community hub will be financed and available for all the community as part of other fundraising activities.”

In response to Rosegrove Neighbourhood Watch refusing delivery of a hub paid for by Depher, a spokesperson for Depher said: “You can tell it’s a general election year because no politician wants to see true poverty in line with their election manifesto.

“Many members of the community will [no longer] benefit from [this] great addition that would have helped lots of families and children.”

Mr Anderson recently had his British Citizen Award taken away, after a BBC investigation found that Depher 'faked' stories of helping people as it raised millions in donations.

Mr Anderson admitted he used people’s photos without consent, used Depher funds to purchase a car, and also claimed he had prevented an elderly woman from taking her own life when in fact she had died years earlier.

For the past five years, Depher has posted hundreds of stories on social media about the work it has done and the acts of kindness displayed towards the people it helped.

The community interest company, located in Keirby Walk in the town centre, has helped many people by fundraising to pay for gas and electricity as well as plumbing work.

The Charity Commission has said it refused three applications from Depher CIC to become a charity.

The Fundraising Regulator has also told the BBC it has opened an investigation into Depher CIC to “determine whether or not its fundraising has breached sections of the Code of Fundraising Practice”.

Mr Anderson denied some of the allegations against him and his CIC, but admitted "making some mistakes" and said he "knows I have done wrong and I apologise".

He also conceded he had exaggerated the number of people Depher has helped, and some of his fundraising had been misleading and he would return some money donated, adding he hopes to "make amends".