A £27million redevelopment at Burnley General Hospital has been approved by planners, after a row over parking was ironed out.

The proposals by East Lancashire Hospitals Trust for a major new building housing 170 beds, a large outpatient department, rehabilitation unit and kidney dialysis unit will benefit people from throughout the area.

They had been put on hold after residents complained about visitor parking spilling over into nearby residential areas.

But at a special meeting of Burnley Council's planning committee, the project was given the go-ahead after the Trust pledged to spend money to counteract the parking problem.

The development includes money for Burnley Council for a residents' parking scheme and to improve public transport to the hospital.

The trust has also committed itself to the implementation of a Green Travel Plan which encourages travel by public transport, bike and walking, instead of by car.

The new building will replace the wards and departments in the original workhouse buildings which date from about 1860.

Chief Executive of East Lancashire Hospitals Trust John Thomas, said: "The exciting new building will provide much-needed modern facilities to the people of East Lancashire, in particular those in Burnley, Pendle and Rossendale.

"The new wards and outpatient facilities will be linked to the main hospital building, removing the need for patients to transfer between buildings in all weathers.

"The new renal facilities will be a boost for patients undergoing kidney dialysis, as it means that they can now receive their treatment on their own doorstep."

The newbuilding will also accommodate new services such as a kidney dialysis unit which will remove the need for many local patients to travel as far as Preston, Calderdale or Manchester up to three times a week for treatment.

The development is being built under a public-private partnership between the trust and firm Catalyst Healthcare. They expect to sign contracts and start building this summer with completion expected in 2006.