Aid for deprived areas unveiled

Help for coastal areas is part of the aid package

The government has announced £1.2bn in aid for nearly 200 of England's most deprived areas.

Announcing the funding on Wednesday, Department of the Environment, Transport and Regions (DETR) Minister Hilary Armstrong said she also hoped the cash - from the Single Regeneration Budget - would pull in a further £1.9bn in private sector investment and £2.5bn in other grants, including from the European Union.

The Conservatives dismissed the cash boost as a "mirage", accusing government spin doctors of re-announcing funding already allocated to deprived areas.

Crime and jobless a focus

Environment Minister Hilary Armstrong announced the aid on Wednesday

The largest grant - £80m - will go to help rebuild the economy of the former South Yorkshire coalfields area, including Barnsley, Doncaster and Rotherham.

There is also £172m for improvements to coastal areas. Liverpool, Birmingham and Hull are among leading cities awarded grants.

Dealing with crime and unemployment is the focus of many of the schemes which successfully bid for this current round of funding.

Last week London Mayor Ken Livingstone announced a £300m boost for the capital from the Single Regeneration Budget (SRB).

Ms Armstrong said: "This investment will make a visible difference to the lives of people living in deprived areas - making communities safer, improving housing and enhancing skills up and down the country.

"The £1.2bn of government investment will help lever in a further £1.9bn from the private sector and £2.5bn from other public sector programmes and European funds.

"The SRB is about finding local solutions to local problems. It is a community-led programme and the funding announced today will give local people the tools they need to improve their neighbourhoods."

Local Regional Development Agencies handle the administration of the funding.

'Summer of spin'

Alex Stephenson, head of the group of RDA chairmen, said: "I welcome this announcement and the prospect of helping to create a better quality of life for people in disadvantaged communities throughout England."

Birmingham and Stoke-on-Trent will each get £40m; Blackpool receives £20m to boost tourism; and Bradford, Durham, Bolton, Burnley, Hull, Oldham, Preston, South Sefton, Wirral and Sandwell also each get £20m.

Tory urban regeneration spokesman Tim Loughton dismissed the government's announcement as "yet another mirage in Labour's summer of spin".

"The fact is that expenditure on urban regeneration has been lower in this parliament than in the last. Government spin doctors are merely re-announcing money that would have been allocated anyway towards tackling deprivation.

"One hopes that promises of more money for coastal towns is more than a seasonal stunt designed by Labour to create photo-opportunities by the seaside - given the need to tackle the deep, structural problems that coastal towns are facing."