Sir Keir Starmer is to announce a "Pride in Place" programme with funding for over 330 disadvantaged communities as part of a fightback against Reform UK.
The money will come alongside new powers for local groups to seize boarded-up shops, save derelict pubs and block gambling and vape stores on high streets, the government said.
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The plan aims to address the sense of isolation in deprived communities, which Labour insiders believe is feeding the rise of Reform UK.
A Labour source described the programme as "absolutely essential" and "transformative".
They told Sky News: "Reform is trying to divide communities, Labour wants to empower them, and we are giving them the tools and resources to turn them aroun