Burnley Council has launched a study to decide whether to set up an urban regeneration company in the town.
The study is an attempt to regenerate the town – 10% of Burnley's housing stock is unoccupied and derelict, and one ward, Daneshouse, is the eighth most poverty-stricken in the country.

The town also suffered race riots last year, and was one of the towns to be targeted by far-right groups at yesterday's local elections.

In partnership with local residents, the study will look at establishing an urban regeneration company in Burnley Wood, a largely unoccupied ward.

The company would initially be set up as a pilot, led by community leaders. Councillors would then look to expand the company into other areas of the town. Stephen Wolski, Burnley cabinet member for regeneration, said: "This is a community project. It has been set up by the council in tandem with the Burnley Wood's residents group."

Burnley council has invested £50,000 from its single regeneration budget into the study, expected to be completed in the summer.

Its regeneration department is to submit its community cohesion plan to the government next week.

Burnley is one of three towns, including Bradford and Oldham, drawing up these plans after racial tension and rioting over the past year. Every other council in the country is to draw up community cohesion plans for next year.