East Lancs gets £3.5m from new derelict building fund

Councils in East Lancashire are being given £3.55m the backing to take over some of their most notorious derelict buildings under a new Government regeneration fund.

Blackburn with Darwen, Hyndburn, and Burnley councils have all secured funding from the Government’s new Derelict Buildings Fund, which is giving £125m to 60 of England’s most deprived councils to bring vacant or derelict buildings back into use.

But beyond the cash itself, newly-published guidance reveals ministers want councils to take a far more interventionist approach to tackling town centre blights, including using compulsory purchase powers where necessary.

Under the scheme Blackburn with Darwen Council will receive £1.55m, while Burnley Council and Hyndburn Council will each get £1m, to find ways to restore buildings and people’s pride in their towns.

The fund, announced in Chancellor John Healey’s Budget on Wednesday, is designed to target prominent empty buildings that have often stood vacant for years and become symbols of decline in local communities.

Government guidance says councils can use the money to acquire buildings, overcome redevelopment barriers, close funding gaps and support new community or commercial uses.

Projects could include former shops, offices, pubs, cinemas, theatres, places of worship, department stores and heritage buildings.

Crucially for local authorities frustrated by absentee owners and stalled redevelopment schemes, the Government has said it will provide support to councils looking to use existing powers including Compulsory Purchase Orders (CPOs).

The guidance states that “acquisition, compulsory purchase and remediation may be necessary or appropriate in some circumstances”.

That means councils could identify a long-term eyesore, attempt to buy it voluntarily and, if negotiations fail, potentially pursue compulsory purchase using existing regeneration powers. The funding could then help cover acquisition, restoration and redevelopment costs.

Ministers say the aim is to transform buildings that are holding back high streets and neighbourhoods while creating new community, cultural, commercial and public-service uses.

The Government has also encouraged councils to consider bringing services such as health, family and youth provision into high street buildings to increase footfall and secure long-term uses.

Unlike previous regeneration programmes, councils will have considerable flexibility over which buildings they target and are being told to work with residents, businesses and community groups to identify the sites that are most damaging to the appearance of their area.

The funding will run until 2030 and councils are expected to begin public consultation and identify potential projects by the end of this year, with the first delivery funding expected from spring 2027.

Lancashire allocations

The Lancashire councils awarded funding are:

Blackburn with Darwen: £1.55m

Blackpool: £1.35m

Burnley: £1m

Hyndburn: £1m

Pendle: £1m

Preston: £1.55m

Lancashire total: £7.45m