HYNDBURN Labour councillors want local firms to be given housing repair contracts if the borough is awarded a £15million Government regeneration grant tomorrow.

However, the borough's Conservative leader said the council has little flexibility on contracts because of Government rules -- although he supported the case for boosting local business in principle.

Hyndburn, Burnley, Blackburn, Rossendale and Pendle authorities will learn on Friday how much cash they are to be give from a £500million regeneration fund.

The Pathfinder project was drawn up by Government housing chiefs who wanted to halt serious decay in nine areas of the country.

East Lancashire was chosen to be included in the scheme and Elevate East Lancashire was set up to deliver the programme.

Elevate tabled a bid for over £100million for three years, although Friday's announcement is set to be a lot less and only for two years. However, council sources say Elevate will be successful even if only £50m is awarded to the area.

Four Accrington wards have been identified as priorities for Hyndburn's share of East Lancashire's money.

Labour councillors Jean Battle and David Myles today said they will strive to award contracts to small firms and ensure the area's young people receive good training opportunities if the area gets a share of the cash.

And they are also concerned that divisions could emerge among residents, if certain neighbourhoods benefit but others do not.

Coun Myles said: "We expect this will be the biggest ever investment by any Government in this area. But we have concerns that poverty does not follow electoral ward boundaries .

"The bottom halves of Westwood Street and Devonshire Street are in Accrington's Central ward, but the top halves are not and are excluded from the scheme, which is crazy."

Coun Battle feared there was a perception among residents that areas included in the Elevate bid would now be "paved in gold", but she emphasised: "I represent Church and it is not paved in gold. But I can understand how people feel that way."

Coun Myles said Hyndburn Council should co-ordinate the contracts and work through an umbrella-organisation. "We want this money to stay in the borough's economy. It could have a really big impact, if it's managed properly."

Coun Peter Britcliffe, Conservative leader of Hyndburn, said there was a case for positive discrimination and giving local firms a helping hand.

But he added: "These are fine words but ultimately meaningless. It is the Labour Government which says how things are to be done.Conservatives believe local councils should be given more freedom on how the money is spent."