Hyndurn will receive the lowest New Homes Bonus in the north west, after building just 22 new homes this year, government figures reveal.
The borough has been awarded nearly £350,000 – but the figure is dwarfed by all the other authorities in the region.
The New Homes Bonus, launched in 2011, offers an incentive to local authorities, matching the extra council tax raised from new homes and empty homes brought back into use.
The figures have been branded ‘very disappointing’ by opposition leaders, but council housing chiefs say the amount is more than last year.
Tory councillor Peter Britcliffe said the borough’s record compared poorly with other neighbouring authorities which have received higher bonus payments.
Rossendale has been awarded £538,390, with the Ribble Valley getting £594,000, Burnley receiving £603,525, and Blackburn with Darwen £897,060.
Coun Britcliffe said: “We really need to make sure we are hitting the targets to bring this extra money in. Last month we had a major development application fall through in Oswaldtwistle and all these things add up. The chickens are coming home to roost.
“You can see it in these figures. For all the boasting the council does, it actually shows very little has happened in Hyndburn compared to other areas.”
Deputy council leader Clare Pritchard said they have brought 269 empty properties back into use over the past 12 months and they are ‘very proud’ of the work achieved.
The council’s budget plans unveiled last week included £3 million investment into housing regeneration in Woodnook.
Coun Pritchard said bringing empty properties back into use – including at Woodnook – is one of their ‘top priorities’.
She said: “We have focused money on that and this is our reward and is something we are very proud of.
“We are bringing empty homes back into use, whereas places like Manchester are building a lot of houses so they are going to get bigger New Homes Bonuses.
“We can’t compete with places bringing in 500-home developments but what we are doing is having a bigger impact on the town. There are homes being built in Woodnook that haven’t counted towards this year’s figures so we are hoping for a bigger bonus by next year.”
Coun Harry Grayson, who is chairman of the planning committee, would not comment on individual development applications, but said he was “delighted” with the funding.