Sir Keir said: “I’ve always believed that people with skin in the game make better decisions about their community and their future, and so that is what we will do.”
He described it as a “programme that backs people to change what matters to them”.
The expansion means around 380 areas will receive funding.
“If you want to know where hope lives in Britain, its in our communities,” the prime minister said.
“That is where people come together, it is where you will find our common good and that is where we will discover once again the courage in each other.”