Thirsk is among three towns in North Yorkshire to receive £1m worth of funding under the government's £100m market town regeneration programme.

Thirsk was selected, along with Pateley Bridge and Whitby, by Yorkshire Forward and the Countryside Agency to receive £340,000 over four years in the second round of funding from the scheme.

This cash will be made up to £1m with matched funding from other organisations, such as English Heritage, the lottery, local authorities and the private sector.

Thirsk, Pateley Bridge and Whitby were chosen on the basis of need, opportunity and commitment of local partners.

English Heritage has also announced that it has made £60,000 available for improving the yards and areas behind Thirsk market place from its Heritage economic regeneration scheme, which is aimed at unlocking the commercial potential of historic buildings.

Mr Mick Jewitt, head of planning policy and economic development at Hambleton District Council, explained that the cash from English Heritage could be used as part of the matched funding in the regeneration programme.

The next step is to get a partnership together with representatives from local community groups from Thirsk, Hambleton District Council, the Countryside Agency and Yorkshire Forward to identify regeneration projects which the cash could be used for.

Mr Jewitt explained that the projects the cash is used for must lead to the social and economic regeneration of Thirsk and the surrounding area.

"It can be used for a range of projects that might help regenerate the town. Anything from promoting the town, transport projects to improve links between Thirsk and the villages," he said.

"Economic development projects, the provision of workshop schemes, training, or tourism-related projects, and schemes based on improving the environment, could all be considered."

He added: "How the money is spent depends on the local community.

"It's up to the people in the community to get together in some kind of partnership to prepare an action plan, which sets out what they see as the issues and problems, what the priorities are and to come up with individual projects."

The mayor of Thirsk, Coun Freda Roberts, said: "It's wonderful news for Thirsk, the money's for the whole area around Thirsk and everybody in it.

"We want to do things that will enhance the town to attract people to come here for work and for shopping," she said.

"That could involve improving transport, probably parking and the enhancement of the visual side of things as well."

The chairman of Thirsk chamber of trade, Mr Don Moore, also welcomed the news: "It's going to take time to set up and plan, it'll be a while before we see any changes, but it's still very nice that Thirsk has got this money."

Harrogate Borough Council is celebrating Pateley Bridge being among the towns to benefit in the latest round of funding.

The council has been very successful in obtaining grants, because the latest cash comes just months after £376,000 of European funding was announced for Pateley Bridge and a year after Ripon's successful bid for £3m from the single regeneration budget grants scheme.

l Traders' joy: page 5.

l Leading article: page 20