TONY Blair has promised hundreds of millions of pounds to tackle derelict, decaying and empty homes in East Lancashire.

The Prime Minister gave the clearest indication yet that the area's joint bid for £670million over 10 years will be granted next month when the arrangements for the "Pathfinder" housing renewal project across England are made.

The government will reveal a new budget to help areas most affected, including East Lancs, which has put together a bid spearheaded by Burnley.

The town's MP Peter Pike tackled Mr Blair during Prime Minister's Question Time.

Mr Pike asked him: "You will be aware that the two biggest problems in Burnley are the 4,500 empty houses and the fact that our main core budget is less, in real spending terms, than it was 11 years ago.

"The forthcoming housing renewal Pathfinder project and new financial arrangements will help the area tremendously.

"However, will you assure the people of Burnley that next year's transitional and bridging arrangement will enable Burnley Borough Council to tackle the two important problems I outlined?"

Mr Blair replied: "You raise an issue that is of great concern to people in your area and other parts of the North West, where houses are lying empty or are falling in value.

"You will probably know that there is due to be a community statement at the end of January, which will set out the pathfinder initiatives to deal with the problem.

"The overall investment that the government will put into housing over the next few years will mean hundreds of millions of pounds more will be available.

"I hope the extra money will play some part in enabling affected communities to rebuild themselves."

Mr Pike commented afterwards: "The Prime Minister's commitment was extremely welcome. It was nice to be able to raise the issue in the last Prime Minister's Questions of the year.

"I am pretty confident that we are going to get something around the £670million we bid for. However, it is important to keep up the pressure and always a good idea to have a commitment from the Prime Minister.

"As well as Burnley it is hoped there will be cash to tackle the problem in Pendle, Rossendale, Blackburn with Darwen and Hyndburn."