BOSSES behind the multi-million pound regeneration of East Lancashire’s housing market insist they will press on despite the threat of funding cutbacks.

The Housing Market Renewal Programme was given more than £50million by the government this year but, after that, cash levels are uncertain as politicians in all parties warn public spending will have to be cut in future years.

In its annual report Elevate, the company that runs the programme, said it was confident of getting another £48million next year.

And it pointed to progress made on schemes including new houses in Hurtley Street, Burnley, and preliminary work on land off Blackburn Road, Accrington, as returns on the investment.

Under Housing Market Renewal, poor-quality housing is refurbished, or demolished, in a bid to stimulate East Lancashire’s economy.

Critics say too much cash is spent knocking down homes, but Elevate bosses insist this is just a small part of their work.

The report does show a sharp increase in the number of houses being knocked down, from 272 in 2007/08 to 522 in 2009/10.

But Elevate chief executive Max Steinberg said many of these related to land acquired in previous years.

More than 900 homes were refurbished in some way with the government cash, an increase from the previous year, while 392 were purchased.

A total of 249 new homes were built on Elevate-owned land, although these were not directly funded by the scheme.

Aside from improving housing, the figures also show more than £5million was spent on working on local projects with councils, and “central costs”, including administration and marketing.

Mr Steinberg, who is in charge of lobbying the government for cash each year, said the project had produced some “pristine” housing for East Lancashire.

And, asked about the uncertainty of funding, he added: “We should not curtail our investment simply because there is a short-term economic problem.”