Local authorities are to receive new funding for the provision of online services.

A total £220 million has been allocated towards providing priority services on the Internet by 2005, it was announced on Thursday.

All councils will receive £500,000 over the next two years, with extra non-financial assistance provided to help them meet their targets.

"This money should assist all local authorities to deliver our shared target of e-enabling all priority services by the end of 2005," said local government minister Phil Hope.

"We are beginning to see the results of the various projects across the country and this funding gives local authorities the support they need to deliver further improved e-services for the people in their area.

"Local authorities have been developing and improving their services using IT to give their customers the modern services they want and need. This support will help them to continue to improve and increase the use their customers make of them."

In addition, £28 million will be allocated to specific projects focusing on the take-up of e-services.

"These next two years will be an exciting time," added Hope.

"As the projects begin to deliver results, services begin to improve, people start to benefit.

"That is what e-government is all about. I see this funding - the last allocations before the target - as helping local authorities get over any hurdles still ahead and allowing them to continue workiing with the determination I've seen first hand on many occassions."