Prescott hands out coalfield cash

Some of the money will be used to create jobs

Former coalfield areas across England are getting £25m to create jobs and rebuild communities hit by pit closures.

About £10m will be awarded to small or medium-sized businesses in former coalfields, Deputy Prime Minister John Prescott said on Friday.

He announced a further £15m for the Coalfield Regeneration Trust to continue its work in former pit towns.

The fund will be operational at the beginning of April.

Private partners

"Our coalfield communities have suffered tremendously since the decline of the coal industry.

Former coalfield areas Leicestershire North East North West Yorkshire Derbyshire Staffordshire Nottinghamshire Warwickshire Kent

"Everyone has a right to employment and a good quality of life - no matter who they are or where they live - and I hope this money will make a difference to coalfields across England."

The Coalfields Enterprise Fund will co-invest with other sources of private finance, including venture funds, and is expected to bring over £20m of investment into businesses in the former coalfield areas.

The fund offers investment of between £40,000 and £500,000 and usually works in tandem with a private partner.