THE WAR between Lancashire County Council leaders and East Lancashire's Labour MPs has cost Lancashire Enterprise's boss Jim Mason a peerage, it emerged today.

The quarrel between Mr Mason and Shadow Home Secretary and Blackburn MP Jack Straw over local government reorganisation in Lancashire, has now reached party leader Tony Blair's office.

Mr Straw and his fellow East Lancashire MPs, notably Janet Anderson (Rossendale and Darwen) and Greg Pope (Hyndburn) have had strong reservations about the county's fight to stay in existence.

The preferred solution for all East Lancashire's Labour MPs was a single tier of all-purpose authorities based on the existing district boundaries.

But Mr Mason, a former leader of the Lancashire Labour Group, now Chairman of Lancashire Enterprises Limited, and county council leader Louise Ellman have bitterly opposed the abolition of the county.

The warfare broke out into the open at the Labour Conference last year when Mr Straw criticised Mrs Ellman, both publicly and privately.

And this year it has continued as Mrs Ellman has opposed independent unitary status for Blackburn and Blackpool - strongly supported by Mr Straw and Mrs Anderson.

There has been great controversy over proposed court action threatened by the county to stop Blackburn's independence going ahead.

The Lancshire Evening Telegraph understands that Mr Blair has become increasingly concerned at this battle.

Now, sources close to Mr Blair have confirmed that Mr Mason has been removed from the list of potential Labour working peers. And they make it clear that Mr Blair - who considers both Mr Straw and Mrs Anderson key allies - is so angry that Mr Mason will not go back on it and will not receive a peerage while he remains leader.

The claims were today attacked by Mr Mason who said: "This is a complete fabrication and a load of nonsense - one of those silly stories that comes along from time to time.

"There was no chance of me becoming a working peer because they don't appoint people my age.

"The age limit for creating working peers is 55 and I am 71.

"I don't even live in the Blackburn area now and I resigned as chairman of the Co-operative Wholesale Society eight years ago."

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