Deprived communities benefit from £192m funding package

A funding package worth £192 million has been unveiled today which is designed to reverse decades of decline in communities affected by low housing demand and abandonment.

Deputy Prime Minister John Prescott announced that the go-ahead had been given for three Housing Market Renewal Pathfinder projects in South Yorkshire, East Lancashire and the Oldham/Rochdale area.

All three take in some of the areas worst affected by sinking house prices and problems like housing abandonment, poverty, poor health and anti-social behaviour, the government said.

Today's pathfinder funding is designed to help local people to make improvements to their homes, increase confidence in the local housing market, and restore pride and prosperity to strong communities that are struggling to survive.

The biggest benefactor is the Transform South Yorkshire Pathfinder which will used £71 million to fund a major programme to improve housing in communities across Sheffield, Doncaster, Rotherham and Barnsley.

The Elevate East Lancashire Pathfinder will receive £68 million, and the Rochdale and Oldham Pathfinder will benefit from a £53.5 million package.

Mr Prescott said: "Good housing is the cornerstone of a successful community. But this is about much more than just getting the buildings right - it's about rebuilding communities and creating places where people want to live and work and which have a long-term future.

"None of this will be achieved overnight. The funding I have announced today is just part of the long-term solution."

The allocations announced today are part of a wider £500 million programme to improve a total of nine Pathfinder areas across the North and Midlands.

The funding package will enable the Pathfinders to begin the first phase in a 10 to 15-year programme of regeneration and housing improvement.

Mr Prescott also announced a £25 million package to help regenerate former coalfield areas. This includes a £10 million Coalfields Enterprise Fund, providing finance for new and existing small or medium sized businesses, and a further £15 million for the Coalfield Regeneration Trust.

He said: "Our coalfield communities have suffered tremendously since the decline of the coal industry. A trail of desperation caused by poor infrastructure and lack of employment resulted in isolated communities where high street banks and new business have been reluctant to operate in the past.

He added: "Everyone has a right to employment and a good quality of life – no matter who they are or where they live - and I hope that both this fund and the increased money for the Coalfield Regeneration Trust will make a difference to coalfields across England."

(gmcg)