REGENERATION funding totalling £14.4m has been welcomed in Burnley - but the town's MP and council leader says more could be done to help those affected by housing changes.

Revamp agency Elevate has been awarded £150m over three years for renovation works across East Lancashire, it was announced yesterday.

Burnley MP Kitty Ussher says the development was "fantastic news" and will help to give the town a new lease of life.

Mrs Ussher has challenged Elevate to reverse a controversial loans scheme, offered to householders affected by regeneration initiatives.

The MP wants the previous grants system, where homes were guaranteed payouts for construction work, reinstated for 2008.

Mrs Ussher said: "The loans system is not much help in finding a new home if you are aged 60 and cannot get a mortgage.

"Elevate did say to me that if they received a decent level of funding they would reconsider their stance on this, so I am calling on them to change this ridiculous policy immediately."

Elevate chief executive Max Steinberg said: "Although it is very good settlement - the second largest in the country - even we were £6m lighter than we expected.

"I have said to Kitty Ussher that we need to sit down with our local council partners and decide on the way forward."

Mr Steinberg said Elevate had a board meeting scheduled in three weeks time and the situation would be clearer then.Council leader Coun Gordon Birtwistle is also happy with the £14.4m cash injection, but says more funding is required.

Coun Birtwistle said: "This council is making real progress but lots more hard work lies ahead.

"Construction of new houses will begin in the next few weeks, a property is being improved almost every day of the working week and we are spending faster than ever before.

"But there remain thous-ands of empty properties, hundreds of properties in poor condition, rock bottom house values and chronic lack of housing choice in some parts of the borough.

"Our £14.4m for the next 12 months is a good start; however, Burnley Council has also seen initial indications for years two and three of our allocation.

"And to be frank, we need more funding to allow us to deliver regeneration at the pace this council would like and residents deserve."

Elevate funding will be used to facelift 215 properties and comprehensively renov-ate and modernise six homes.

Another 146 homes will be acquired, using the cash, and 92 properties will be demolished, as part of an empty homes initiative.

Steve Rumbelow, council chief executive, added: "While we would have liked more funding and more certainty around years two and three, the amount for the first year is a real achieve-ment and so Elevate should be applauded.

"But now is not the time for complacency. Now is the time for more hard work to continue with the programme as planned and work with Elevate to get a rising funding level from 2009 to 2011."