A BID for up to £2.5 million funding for rural development projects in the Cotswolds, West and North Oxfordshire has been made by three district councils.

If successful in May, when a decision is due to be announced, the money from the EU and government could be spent to help finance projects in an area of more than 2000 km2, stretching from Tetbury in the south west to the borders of Worcestershire and Warwickshire in the north.

"In West Oxfordshire we have already had a great deal of success in helping get rural projects off the ground through the Leader+ programme that ends this year," says council leader Barry Norton .

"Our aim now is to build on this and we are hopeful that in May there will be some very good news about more financial support."

The bid has been submitted by West Oxfordshire District Council and its bidding partners Cotswold and Cherwell District Council to the Government's South East England Development Agency -SEEDA.

The agency has made it clear that priority for any grant allocation should be given to innovative ideas in farming, forestry, business and the community, and to projects that could help tackle climate change and reduce demand on the Earth's natural resources.

Strong emphasis would be on capital projects involving machinery and buildings. Money could be allocated for things like farm diversification to develop new farm shops or convert buildings for tourist accommodation.

Environmental projects could focus on a move into growing crops to produce biofuels or, for example, converting a school heating system to burn wood instead of oil.

A local action group of representatives from over 20 community and voluntary bodies has been set up to agree priorities for funding.