Community groups will be given powers to block betting and vape shops from opening and save local pubs and libraries from closure.
The Government’s Pride in Place programme will see 169 areas receive £2 million every year for a decade, and a further 95 will get an immediate £1.5 million to upgrade public spaces.
Funding will be given to projects through consultation with community groups, local organisations and social clubs.
Councils will also have powers to revitalise derelict buildings and boarded-up shops under Community Right to Buy and compulsory purchase powers.
Cllr Arooj Shah, Chair of the LGA’s Neighbourhoods Committee, said the extra funding and powers were “positive” and would help councils in these areas revitalise high streets and shape communities.
She added: “It is essential these funds are allocated in a fair, flexible manner based on what local places need, with necessary support from government to trust them to get on with the job.
“Local government has long been a critical driver of economic renewal, where councils understand their communities’ unique challenges – ranging from access to skills training, transport connectivity, and creating vibrant town centres to supporting rural areas – and are best placed to shape local strategies that align with local strengths.”