Section 11 funding
Timothy Kirkhope, Home Office minister, told Parliament last week that the present grant, worth around Pounds 86 million, would continue until August 1998.
The Association of Metropolitan Authorities and the Association of County Councils have been pressing the Home Office to decide on the future of the cash which was due to run out in March.
The grants support nearly 500 projects involving 8,000 jobs under Section 11 of the 1966 Local Government Act. Most of the money goes to providing extra staff to teach English as a second language in schools and colleges.