A Birmingham anti-poverty fund will get an additional £3.2 million after the Government said it was satisfied past poor performance in spending the money had been overcome.

Local Government Minister Phil Woolas withheld ten per cent of the city's £32 million Neighbourhood Renewal Fund in February, after he was not satisfied with progress in reducing crime and unemployment and improving health, education, housing and the environment.

The Birmingham Strategic Partnership, led by the city council, had not adequately shown how it was improving performance in helping deprived areas, Mr Woolas said.

Following a review of the BSP's 2006/07 action plan, Mr Woolas said he was satisfied Birmingham had "stepped-up its game" and that the additional £3.2 million should be handed over.

A similar ruling applies in Nottingham and Hull, where withheld NRF money will also now be paid.

The BSP's NRF action plan promises to: n Narrow the significant gap of housing disrepair for vulnerable households in the private sector through an affordable wealth programme, including installing solar water heating panels n Develop NHS services to improve life expectancy and infant mortality.

Mr Woolas said: "Local people deserve the best possible performance from public service providers. The action we took in February signalled that poor performance will not be tolerated. Birmingham has now stepped up its game to make sure the people they serve do not lose out." ..SUPL: