Progress is being made on the creation of the £80m Communities First fund, with the deadline for organisations bidding to run the scheme having now passed.

The fund, which was first announced by minister for the Cabinet Office Francis Maude (pictured) in June last year, is a successor to the Grassroots Grants scheme and will be delivered by one of the government’s six preferred providers for grants schemes.

The preferred providers, who are the Big Lottery Fund, the Community Development Foundation, the Social Investment Business, v, PricewaterhouseCoopers and Tribal Education, had until yesterday to submit their bids.

The fund will include £50m for local endowments and £30m in grants for community groups, and will only be available to those based in deprived areas. These chosen areas have yet to be named.

There have been indications that the £50m segment, which is aimed at building up local endowments over the course of four years, will be awarded on a match-funded basis, though it is unclear whether this will be mandatory.

The successful bidder is due to be announced in June or July, according to the Office for Civil Society.