YORKSHIRE'S businesses and voluntary groups are to reap the benefits of a £1 million European funding cash hand- out.

Nearly 40 projects, including six in North Yorkshire, are to be awarded grants via their local authority through the European Commissions Objective 2 programme.

Hambleton Council has been awarded £79,500 for its Hillside P3 delegated grant scheme, which will be used to help local groups develop skills to make better use of European funding.

And North Yorkshire County Council is to receive £225,459 towards a property grants scheme aimed at encouraging capital development across the county.

"This is great news for the region and yet another example of the key part European funding is playing in backing the region's efforts to establish itself as world-class, both economically and socially," said Alison Biddulph, director of the government office of Yorkshire and Humber.

"The range and quality of the projects that have won funding is impressive.

"They will all have a great impact on the day-to-day lives of people across the region."

Hillside Out-of-School Club, based at Knayton Primary School, near Thirsk, has been promised £60,628 to provide high quality child care.

"We have a nursery, Borrowby Play Group, but no child care in the area," said Carolyn Mullins, play group organiser and child care assistant.

"It's badly needed, especially now as many farming families are having to work or train following foot and mouth last year."

Match funding has now been found for the £120,000 project which will open later this year.

Updated: 11:43 Thursday, January 09, 2003