A total of £375,000 is being made available by Copeland Council between the borough’s four main towns – Whitehaven, Cleator Moor, Egremont and Millom – with a £75,000 pot for its villages.
A further £50,000 is up for grabs for street improvements, including seating and flower beds.
Town and parish councils, community groups or businesses can apply for grants of up to £5,000 from the borough council, and must then match-fund the amount themselves.
The funding package, part of the council’s 2017-2020 budget, has been agreed in principle by the council’s executive and must be ratified by a meeting of all councillors on Tuesday.
Copeland mayor Mike Starkie says the proposals have been adjusted amid some criticism from councillors earlier this month that the budget was “too focused” on towns.
The amount available to towns has now been reduced and the difference instead diverted to villages and street improvements.
Mr Starkie said: “Town centre regeneration is crucial to Copeland where there has been significant decline in the appearance of some shop and business premises.
"Our scheme seeks to improve our town centres and villages to make Copeland a better place to live, work and visit.
“As an Executive, we heard the comments from members and have proposed the changes as a result.”
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