The future of one of Britain's oldest surviving rollercoasters, a scenic railway ride in Margate, Kent, has been safeguarded after the Dreamland Trust was handed a £3.7m grant.

Funding has been made available for the preservation of the Grade II-listed ride by the Department for Culture, Media and Sport (DCMS) as part of the Sea Change scheme, which aims to invigorate English seaside towns.

The grant will be used to restore the rollercoaster, which was built in 1920, as well as helping to fund the creation of the world's first amusement park exclusively comprising historic rides.

Plans for the £12m attraction have been drawn up by the Dreamland Trust, which will include the restoration of the Grade II*-listed Dreamland Cinema and the installation of an exhibition space to outline the project.

Nick Laister, chair of the Dreamland Trust, said: "This proposal has the ability to create an outstanding, 21st-century attraction at Margate, capitalising on the resort's unique heritage in a way that will make a huge contribution to the regeneration of the town.

"The scenic railway rollercoaster has not operated since 2006 and was badly damaged by fire following an arson attack last year. This grant should now secure the future of this remarkable structure and allow work to start on rebuilding it next year, along with all the other rides that we have rescued."

Richard Simmons, chief executive of the Commission for Architecture and the Built Environment (CABE), added: "It is ambitious projects like this, creating new national attractions, that can rekindle the English love affair with our seaside."

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