EAST Lancashire’s regeneration plans have been given a £5million boost.

The government has agreed to give the cash towards the Housing Market Renewal programme, which is working to reviltalise the region’s property market.

Bosses say it will help solve some of the “blockages” that have hit the programme during the recession, with some projects stalling and put off until future years.

The announcement comes as a relief to East Lancashire’s leaders who have been frantically negotiating since the cash, 10 per cent of the annual allocation, was with-held by the government earlier this year.

Blackburn MP Jack Straw, who lobbied ministers on behalf of the area, said: “I am very pleased about this and that my ministerial colleagues have recognised the very strong case that has been made.”

The money will now be allocated to revamping specific areas of housing across East Lancashire.

In a change of policy from previous years the government had held back 10 per cent of the region’s £50million allocation for 2009/10 and demanded bosses make a case to get the final share.

Max Steinberg, chief executive of Elevate, the company leading the HMR programme under the banner Pennine Lancashire, said: “This is a vote of confidence in Pennine Lancashire.

“The additional £5m investment announced today shows that the government recognises our strong track record on delivery, and acknowledges our ability to innovate and fight back in a difficult economic climate.

“The extra funding will make a real difference in getting new housing coming out of the ground and helping people to buy their first home or move house.

"This will start to resolve some of the current blockages.”