The threat to the expansion of the National Railway Museum has been lifted.
Government ministers previously said they were “minded to withdraw” £15m of levelling-up funding earmarked for the York attraction.
That would have meant plans for a new Central Hall would have to be scrapped.
Now, though, the government has confirmed that they are releasing the £15 million.
On a visit to the Leeman Road museum, deputy prime minister Angela Rayner said they had to check investment pledges made by the previous government.
But the fact that the project forms part of the wider York Central development, which is set to include at least 2,500 homes and create around 6,000 jobs, had been crucial.
Ms Rayner said: “When we got into government there was a huge £22bn black hole in the country’s finances, so we had to review promises like this.
“But myself, the prime minister and the chancellor were clear that we wanted to see growth across the UK and where plans were viable in areas like these we’d want to give them the funding to go ahead.
“The wider growth that comes as part of projects like these is really crucial, the York Central site that the National Railway Museum expansion is a part of includes at least 2,500 homes and 6,000 jobs.
“It will create a ripple effect of wider regeneration including affordable and social housing, we’re pushing really hard so that local people in York can get the benefits from York Central.”
Crucial to the economy
The deputy prime minister’s visit to York came after York and North Yorkshire Mayor David Skaith and City of York Council leader Claire Douglas wrote to her warning that the expansion of the museum would stall without the cash.
Mr Skaith said getting the money had been a challenge, adding: The mayor said: “This and the wider York Central scheme are key to growing the local economy and securing jobs and new homes, but you don’t see that on a spreadsheet so we’ve had ministers here to visit and to come and see the importance of it themselves.
“I think York Central is going at a really good pace, we’re working closely with the developers so that our goals for regional growth align with the project.”
The National Railway Museum’s new Central Hall will house an exhibition about sustainable technology and how the railways have impacted people’s lives.
Work on the building is set to begin this year and finish in 2027.
The layout of the museum’s Great Hall is also set for a revamp and renovations are ongoing at Station Hall, which houses historic locomotives and rolling stock including royal carriages.