EAST Lancashire has had its funding for vital housing projects cut by millions of pounds.

It is feared the “bomb-shell” announcement will hit the region’s housing regeneration and could halt some schemes that have already been started.

It comes on the back of a 10 per cent reduction in East Lancashire’s Housing Market Renewal funding, which goes towards renovating run-down areas.

Last week the government wrote to each council to reveal how much cash districts would be given to spend out of a regional housing pot.

And a full breakdown of the allocations reveals East Lancashire districts have been hit harder than other areas.

Of the 14 North West districts to be given a reduction in funding, five are in East Lancashire, with only Ribble Valley from this area being given more cash.

Lib Dem councillor David Whipp, who represents Pendle, where funding has been cut £1.1million to £1.5million, said: “This is a disaster.

"We are having to look at whether we will have to stop work on some improvement projects.

“They are robbing East Lancashire and it’s not acceptable.”

Coun Michael Lee, the Tory leader of Blackburn with Darwen Council, which has seen a £521,000 reduction on last year, added: “It’s definitely on the lower end of what we were expecting, half a million, "We don’t know which schemes will be affected yet.”

The housing funding, which is given out each year, is used to match housing market renewal cash and carry out work on specific housing projects.

Pendle has lost £1,145,000, Hyndburn £939,000, Burnley £1,024,000, Rossendale £121,000, and Blackburn with Darwen £521,000.