NEW business is failing to boom in Burnley the way economic development bosses hoped it would - despite big cash incentives on offer.

Burnley's Challenge Fund aimed to link with entrepreneurs to create 1,400 new firms in the town in the seven-year life of the Government's multi-million pounds Single Regeneration Budget scheme. But more than half way through year five of the programme, just 251 new companies have been set up.

Council regeneration chiefs have had to admit that by the end of the scheme, just 350 new companies will have been established - only a quarter of the target. They have also had to tell the North West Regional Agency - the body which holds the purse strings to schemes - that the target for jobs created by the Challenge Fund will not be met either.

Although more than 5,000 jobs will have been created in the target area in the seven year term, this will amount to just 77 per cent of target. Council regeneration manager Mike Cook, said that while many targets had already been met, there had been problems realising others. "These are predictions made five years ago, contain a lot of guesses and uncertainties and cannot account for changing circumstances.

"Although we may not match some predictions, all the figures are very good in real terms and have made a tremendous difference to the target areas."

Mr Cook said the NWRA could accept the way the special partnership which runs the Challenge Fund was handling matters, or could ask for greater emphasis to be placed on various areas to boost outcomes.

Latest figures presented to the urban regeneration committee shows the SRB programme has already met its seven-year target of safeguarding nearly 3,000 jobs and putting more than 4,200 people back into employment.

By the end of the programme, the prediction that 30,000 training weeks will have been given will have been fulfilled.

In addition some 2,500 people will have obtained qualifications through the scheme.

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