THE Government has promised to review the supply of Whitehall cash to Burnley Council in the longer term, but has offered no short term financial fixes to the authority.

A delegation from the borough met local Government Minister Alan Whitehead yesterday to discuss its problems.

They told him that there were problems in balancing the budget for the coming year in the light of Burnley's unique problems including poor housing and depravation.

Mr Whitehead offered not immediate prospects of extra help in the short term but recognised that Burnley was "uniquely disadvantaged" and promised to take its problems into account when he reviewed the Local Government Finance System and the way central government money was allocated to councils.

He also recognised the specific problem faced by Burnley where two thirds of the borough's properties were in Band A -- the group of houses where people pay the lowest rate of council tax.

Mr Whitehead promised to look at ways of making the banding system more flexible and ensuring that it better reflected an individuals ability to pay regardless of the value of the house. Property prices in Burnley are very cheap compared to national prices which means that many well-off people find themselves in Band A in the town when they would have to pay a higher rate elsewhere in Britain.

The delegation raised the specific decision by the Government to withdraw Burnley from the third phase of the new deal for the community costing it cash.

Mr Whitehead promised to look at the council's case that it should have been included in the next stage of the programme.

Burnley Council executive member Peter Kenyon, responsible for resources, said: "I never expected to come back from Westminster with a pot of gold but the minister does understand our position and we shall keep pressing our case. We are expecting to see some significant moves in the future."

Burnley MP Peter Pike, who organised the meeting said: "There is no immediate prospect of additional help next year and the difficulties that the council have in balancing next year's budget remain.

"However, I felt the minister grasped the key problems facing Burnley which are very specific and which we were able to highlight.

"I believe that in the end we will persuade the government to respond in a positive way.

"It was useful to meet now before the government proposals on these issues are finalised and, as the minister put it, to get our case understood before the new local government finance system is set in concrete."