As part of the spending review, Chancellor Gordon Brown announced the Neighbourhood Renewal Fund would be extended as part of efforts to narrow the gap between the poorest areas in England and the rest of the country.
The fund will continue at its current level of 525m a year until 2007/08.
Full details of how the cash will be distributed are expected to be announced in the autumn, but regeneration minister Lord Rooker has hinted that money may go to areas outside of the 88 most deprived wards currently eligible for help.
He said that the recently released Indices of Deprivation 2004 would be looked at as part of the allocation process.
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