Councils locked in dispute over £700m redevelopment

A furious row has erupted between two local authorities in the North West over the future of a £700m redevelopment.

Preston City Council said the Tithebarn project would deliver a new bus station, a new cinema, cafes, offices and homes and revitalise the city’s markets,

A planning inspector ruled that the scheme was flawed and should not proceed. However, this decision was overturned in November 2010 by the Communities Secretary, who said planning permission should be granted.

Blackburn with Darwen Council has now launched a legal action in the High Court against Eric Pickles’ decision.

Cllr Ken Hudson, Leader of Preston City Council, said: “We are just in utter disbelief. It means more expense to the taxpayers of Blackburn and yet more delays and uncertainty for Preston.

“How Blackburn can justify spending public money on another unnecessary legal challenge to Tithebarn at a time when they are making job cuts, is quite simply beyond us and no doubt most reasonable people.”

But Cllr Dave Harling, Blackburn’s executive member for regeneration, was defiant. He said: "After a lengthy six week inquiry the inspector agreed with us that the Tithebarn planning application was flawed and should be rejected.

“The Minister overturned this decision, but it is not clear how he reached his decision and we believe that there are procedural improprieties that need further investigation. The impact of the minister's unjustified decision will have a negative effect on Blackburn and other local towns, which the minister did not appear to think was important."

Cllr Andy Kay, Blackburn’s executive member for resources, revealed that the costs of any appeal formed part of the original legal fees.

“There is a lot at stake – not only local jobs, local businesses but also the long term future of Blackburn town centre,” he claimed.

“We need to protect the millions of pounds we have invested so far. Our investment in the town centre, which is valued at tens of millions of pounds, including the new Mall and our new market could be seriously jeopardised by a development of the scale of Tithebarn."