Community groups in England will be able to apply for grants of between 1,000 and 100,000 from the Living Spaces scheme to develop open spaces into sports areas, playgrounds, parks, communal gardens and city farms.
Residents will be helped to develop local areas by members of environmental charity Groundwork, manager of the national scheme, which was launched last week.
One of the first areas to benefit from the funds is Riverside Park in Watford. Previously a rubbish dump, the space has been equipped with a skate park, a playground and a ball games court.
A further 25,000 from the Living Spaces scheme will now be used to create areas for older residents and a grass maze designed by local schoolchildren.
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