The regeneration project at the north Norfolk town is to be given £1.5m, it was announced on Monday.

Another big winner is Breckland District Council, which is to get £1.25m to support its project to promote tourism.

Officials said a further £56m was on offer to eastern England over the next four years - and urged project bosses to "use it or lose it".

'Imaginative projects'

Some of the funding could be recalled by the EU if it is not handed out by the end of next year.

David Morrall, the head of the European Unit at the Government Office for the East of England, said: "On current estimates up to £5m could be at risk of being clawed back by the EU.

"We are looking for local communities and their representatives to show imagination, energy and commitment to bring bids forward as soon as possible."

Other winners on Monday were the North Norfolk Steam railway, which runs from Sheringham to Holt, which will get £213,000.

The Titchwell Nature Reserve, run by the Royal Society for the Protection of Birds, is to be given £65,000.

The grants were made under the Objective Two programme, which is open to some of the poorest areas in Norfolk, including Great Yarmouth, Breckland District and the North Norfolk coast.