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A Labour-led council has sparked controversy after cancelling its local election on the grounds of saving money, only for it to emerge that tens of thousands of pounds were later spent on a mental health initiative aimed at asylum seekers.

Blackburn with Darwen Borough Council is among 29 local authorities that were given approval by the Government to delay scheduled local elections this year. The decision has drawn sharp criticism from opponents, who argue that the move undermines democratic accountability and reflects growing nervousness within Labour as polling indicates declining support in certain parts of the country.

Council leaders justified the postponement by pointing to financial pressures. Phil Riley, the Labour leader of the authority, previously said the cost of staging an election, estimated at around £200,000, could not be justified when the vote would need to be rerun the following year due to changes in ward boundaries.

He argued that scarce resources should instead be directed towards services residents rely on, rather than what he described as an unnecessary and short-lived electoral exercise.

However, those claims have been challenged following the disclosure that the same council allocated £30,000 to commission a project centred on the mental health and trauma experienced by asylum seekers living in the borough, according to The Telegraph.

The funding was awarded in January 2024 to a university, with official documentation stating that the council had a long-standing commitment to supporting asylum seekers and refugees.

The stated purpose of the commission was to design and develop a programme addressing trauma within the local asylum-seeking community.

The spending has prompted accusations of inconsistent priorities.

Richard Tice, the deputy leader of Reform UK, said the contrast between cancelling elections and funding such projects would anger voters.

He claimed that residents were being denied their democratic voice while public money was diverted to causes that many taxpayers would not see as a core responsibility of the council.

Campaigners argue that financial arguments are being selectively deployed and that councils cannot credibly claim poverty while continuing to fund discretionary projects.