Plans for a new heritage attraction in Margate, Kent, have been handed a boost after the local authority agreed to contribute up to £4m towards the scheme.

Thanet District Council (TDC) has approved £2.2m investment towards the regeneration of the Dreamland site, which is set to create one of the world's first amusement park of historic rides.

Councillors also agreed to borrow up to £1.8m if the scheme is unable to attract alternative funding, although the proposals are subject to approval from the full council.

In addition to the funding commitment, TDC cabinet members have agreed to start work on transferring part of the Dreamland site from owner Margate Town Centre Regeneration Company.

The council will take on the freehold of the Dreamland Cinema as part of the acquisition, which will enable the development of the heritage amusement park.

TDC is working in partnership with the Dreamland Trust on the scheme, which has secured funding through the government's Sea Change initiative and the Heritage Lottery Fund.

A TDC spokesperson said: "The report sets out that this land transfer should be completed by the end of July 2010 to enable the project to meet the Sea Change grant conditions, which require the funding to be used by March 2011.

"Cabinet agreed that should it prove necessary, compulsory purchase proceedings could be used to minimise the risk that this deadline cannot be met, although it was stressed that would be a last resort."