LARGE areas of East Lancashire were today bracing themselves for bad news from a key Euro cash announcement by the government.

It was feared that only Blackburn with Darwen and part of the Ribble Valley would continue to benefit from European Objective Two money.

Burnley, Pendle, Rossendale, Hyndburn and the rest of Ribble Valley appeared to have lost out altogether - although those boroughs will receive transitional cash from the government to soften the blow.

The expansion of the European Union into former Eastern Bloc countries is partly being blamed for the lack of cash heading to East Lancashire.

Money is expected to be allocated on a council ward basis with the cash being targeted at areas which are deemed to be most in need. The announcement was due in the summer but a row between Trade and Industry Secretary Stephen Byers and Deputy Prime Minister John Prescott has delayed final decisions until now.

Since then MPs and council's have been lobbying for as much coverage of East Lancashire under Objective Two as possible amidst fears had been expressed that the area would lose out.

Blackburn with Darwen Council chief executive Phil Watson and Mike Damms, chief executive of the East Lancashire Chamber of Commerce spent yesterday in Brussels with North West government bosses to negotiate the strategy document for Objective Two which was due to begin on January 1, 2000.

The delay in the announcement is believed to have had the knock on effect of delaying the handing over of the cash for regeneration work to begin.

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