Ministers have warned local authorities they must directly challenge violent extremist ideology, if they are to receive cash from a £3.2M fund set up to tackle terrorism. The CLG published guidance supporting bids for cash from the Challenge and Innovation Fund on 29 May. The document reveals that successful bids must meet the Government's key objective of challenging extremist ideology locally, and supporting religious understanding. ‘Initiatives which support a direct challenge to the violent extremist ideology will be given particular priority,' the guidance states. Councils which develop supportive relationships with local imams or Islamic scholars, for example, are likely to be viewed positively. Bids which join up councils' ‘prevent' work – anti-terrorism activities partially co-ordinated by the Home Office – with local policing initiatives will also be favoured, alongside those that deliver match-funding. A CLG source told The MJ: ‘Many councils and police authorities have developed very positive relationships with community leaders at local mosques, as well as other communities in which extremism could develop. This funding will boost programmes designed to help those communities tackle extremism from within.' Successful bids are likely to receive between £10,000 and £100,000. Councils must submit applications by 26 June.