BURY'S ambitions to merge with Rossendale under a shake-up of regional government have been dealt a fatal blow.

The Boundary Committee says that our northern neighbours would be better off forming a new East Lancashire council with Burnley, Pendle and Ribble Valley.

Town hall leaders in Bury have reacted with dismay to the committee's final recommendations, published this week.

They wanted Rossendale residents to be given the option of joining Bury when they go to the polls in the autumn.

The change all depends on people voting for a regional assembly, under which district councils would be abolished and form new authorities with those nearby.

In the referendum, residents will have two votes: "yes" or "no" to a regional assembly and, if "yes", one of two options to replace the district councils. The committee has suggested either a huge new Lancashire Council or a range of smaller councils, including the East Lancashire option.

The committee concedes that Bury could have much to offer Rossendale, but perhaps not as much as the other councils: the East Lancs solution, it says, would be a mixture of urban and rural areas and have a good balance of economies and communities.

It says: "We recognise that Bury is a greatly improved council, having moved to 'fair' in its recent CPA assessment. Its experience in managing the improvement process could be of benefit to the Rossendale area and it would have much, potentially, to offer Rossendale residents.

"However, we are of the view that a Bury with Rossendale authority would not facilitate a better solution for Rossendale residents than being included in another authority with Burnley, Pendle and Ribble Valley, which has the potential to perform well as a unitary authority.

"We also note that, while Bury might gain from expansion in terms of increasing its population and influence in the region, its submission did not fully address how Rossendale residents would benefit."

Mr Mark Sanders, chief executive of Bury Council, said he would not appeal against the committee's decision.

He said a merger would be good for both boroughs: Bury would have greater clout and attract larger Government grants, while Rossendale residents would benefit from Bury's top-performing education system and transport links, including the Metrolink.

"I'm disappointed that the people of Rossendale are not being given the choice," he said, "but we will carry on with our 'vision of excellence' for Bury."