Almost £20 million of Government "fix-it" cash is to be lavished on the Westcountry to revive stalled housing developments, shopping centres and business parks.

In November, the Western Morning News reported two regional regeneration bodies were to be given spending money from the so-called Growing Places Fund.

Now Communities Secretary Eric Pickles has confirmed the Devon and Somerset Local Enterprise Partnership (LEP) is to get £14.5 million.

The LEP for Cornwall and the Isles of Scilly will receive £4.3 million.

It will be the first test of the mettle of the LEPs, which have assumed the role of driving economies in the region, as they will decide how the money is spent.

The £500 million fund lasts only a year and is designed to pay for link roads, flood defences and infrastructure are holding back larger developments.

Tim Jones, chairman of the Devon and Somerset LEP, said: "We would welcome applications from projects which have been genuinely blocked and are ready to go – this fund is designed to help unlock developments that would otherwise not be financially able to proceed.

"We see this as a vital component in creating economic growth and we are keen to ensure that the partnership will be able to direct this funding where it can generate the biggest benefits for the whole area."

Chris Pomfret, Cornwall and Scillies LEP chairman, said: "We will now be issuing a competitive call for proposals from the public and private sector for 'investment ready' schemes associated with transport, utilities and flood defences or other constraints which are prohibiting development."

The loan funding has been allocated to the country's 38 LEPs. Once the scheme is up and running the developer pays back the loan.

Ministers are concerned development of housing estates, offices and factories are not coming to fruition because no-one is willing to pay for link roads, flood prevention schemes and other essential infrastructure.

The one-off fund is based on the Regional Infrastructure Fund, pioneered by the South West Regional Development Agency.

A £22 million investment paid for a package of infrastructure projects to pave the way for the delayed development of the new community at Cranbrook, near Exeter.