A HUGE scheme to demolish and rebuild properties in some of Accrington's most run-down areas will not be defeated by cash problems, Hyndburn Council has promised.

Project Phoenix will see properties bought up and replaced by the council over the coming years.

Part of the funding was to have come from the North West Development Agency, who have suffered a cash-flow problem in recent weeks.

But the council officer heading up much of the borough's regeneration plans has reassured residents that Project Phoenix will still rise from the ashes of the cash crisis.

Elevate, the group behind massive plans to improve housing across the whole of East Lancashire with backing from the Government's Pathfinder renewal programme, have stepped in to help.

Nigel Rix, director of regeneration group Hyndburn FIRST, said: "The council has received strong support from Elevate East Lancashire, the housing market renewal partnership, to purchase properties in the Lower Antley area for Project Phoenix.

"The council has committed to further purchases and is in active negotiations with several residents regarding future purchases."

So far the council has bought more than 50 properties in the area, and fears were raised that the North West Development Agency problems would put a halt on the scheme. The agency are not able to supply cash over 2004/2005, and instead will be handed out from April 2005.

But the council insists the scheme, which will include construction of a health centre, is on track.

Mr Rix said: "Residents who are unsure about the present position are very welcome to call us to confirm their position in relation to their particular property.

"We expect the first demolition in the Project Phoenix area to take place during August."