Areas in the north including former coalfield towns affected by sinking house prices and problems like housing abandonment, poverty, poor health and anti-social behaviour are getting a £200m boost to help eradicate the problems and revitalise the communities.

The Pathfinders money is part of the ‘sustainable communities plan’ first announced in February 2003. The projects form the first phase in a 10 to 15-year programme of regeneration and housing improvement.

Deputy Prime Minister John Prescott said the 'massive' programme could attract millions more in investment from other sources, including the private sector.

The three projects in South Yorkshire, East Lancashire and the Oldham/Rochdale area include:

• £71m for the Transform South Yorkshire Pathfinder to fund a major programme to radically improve housing in communities across Sheffield, Doncaster, Rotherham and Barnsley;
• £68m for the Elevate East Lancashire Pathfinder to tackle abandonment, poor quality housing and a collapsing housing market across communities in the area, including Burnley and Blackburn; and
• £53.5m for the Rochdale and Oldham Pathfinder to turn around a weak housing market where there are neighbourhoods that suffer severe overcrowding next to those blighted by abandoned housing.

Mr Prescott said the North West and South Yorkshire are both vital parts of the 'Northern Way' - a corridor of growth and prosperity stretching from Liverpool to Hull and north to Newcastle.

"We're getting the housing right. We're building on the potential of the northern regions. We're sending out the message - this is a great place to live," Mr Prescott said.

Business boost

Mr. Prescott also announced a £25 million package to help regenerate former coalfield areas.

"Our coalfield communities have suffered tremendously since the decline of the coal industry," Mr Prescott said. "And this is why I am delighted to be able to launch the Coalfield Enterprise Fund today - offering an incentive to new business and in turn helping to restore prosperity to some of our country's most deprived areas."

The Coalfields Enterprise Fund will provide much needed finance for new and existing small or medium sized businesses in the former coalfield areas - helping to regenerate communities that have suffered the effects of economic decline following pit closures.

The fund provides start-up cash for new and developing enterprises in the former coalfields and will help to fill the gap identified by the Coalfields Taskforce in the provision of risk capital in these areas.