DEPUTY Prime Minister John Prescott is returning to East Lancashire to reveal details of a multi-million pound regeneration programme.

Three weeks after visiting Blackburn to outline his regional assembly plans, Mr Prescott will return to the town on Friday to reveal how much money he is giving the region to tackle housing decay.

A senior government source told the Evening Telegraph that Elevate was set to be given over £50million over two years to turn around run-down neighbourhoods in Blackburn, Darwen, Burnley, Accrington, Rossendale and Pendle.

Elevate, the company set up to control the East Lancashire housing market renewal scheme, submitted a three-year bid for more than a fifth of a £500million cash pot set up by Mr Prescott's department.

The company will not be told how much more cash they are to be given until the government finalises its comprehensive spending review next summer.

The government source said: "East Lancashire has been one of the most difficult and complex schemes.

"It covers five local authorities and the problems are among the most severe, which is why it has taken so long. We're talking tens of millions of pounds over two years being announced on Friday.

"There will be a commitment to continue the money for East Lancashire after that.

"But we're getting into comprehensive spending review territory.

"The department has to argue its case for the next tranche of funding after the two years with the Chancellor. That's why we can't announce anything longer term on Friday.

"It is good news for East Lancashire."

Mr Prescott is also due to officially open Blackburn's newly renovated pavilions in Church Street.

The Waterloo Pavilions have been brought back to life after years of neglect and transformed into shops.

A council spokesman said negotiations for tenants were still being finalised but an announcement was due to be made soon.