Tate St Ives and the Looe Music Festival are set to benefit from a share of £36 million Government investment to boost growth in coastal areas.

The money – from the Coastal Communities Fund – will support projects that will create nearly 3,000 jobs and almost 1,500 apprenticeships and training places across the country. It is the biggest round of cash provided by the Fund for schemes that are also attracting £36million in additional financing.

Projects to benefit include:

Tate St Ives will get £3.8million to help extend the art gallery so it can welcome 76,000 new visitors a year to the area and "create more than 200 local jobs".

Looe Music Festival in Cornwall has been given £149,000 to develop cultural tourism in Looe and addressing seasonality by supporting a volunteer-led annual autumn festival.  This "will create 65 jobs".

Chancellor of the Exchequer George Osborne said: “The South West coasts are not only uniquely beautiful, they are vital engines of the economy here. That's why I’m delighted to announce a £10 million package of support for coastal towns that will be spent on ten projects here, including the redevelopment of the brilliant Tate in St Ives and a project to expand tourism in the Isles of Scilly.

“This will create nearly 900 new jobs, and bring over 75,000 more visitors to this part of the country. It’s all part of our long term economic plan for the South West.”

Danny Alexander, Chief Secretary to the Treasury, said: “I created the Coastal Communities Fund because, as someone who grew up on a small island, I know how much difference targeted investment can make to people's lives. It’s already supported scores of coastal communities from the Highlands of Scotland to the south coast ofEngland.

“Projects benefitting from the latest round of funding include a new footpath in Dawlish, and a restored steamer in Bristol that will create 42 jobs. Overall, hundreds of communities across the UK will benefit, creating jobs and making sure that some of our most remote and fragile communities share in the economic recovery.”

Coastal Communities Minister Penny Mordaunt said: “Backing our coastal towns so they can rise up and drive forward their local economies is a key part of our long-term economic plan to secure a brighter future for Britain. This money will help create jobs, boost skills and open up new business opportunities, benefitting hardworking people in coastal communities across the country.

“These fantastic projects demonstrate the creativity, enterprise and passion needed to help seaside towns become year round destinations that people are proud to live and work in”.

Projects across the South West receiving money have welcomed the announcement.

Tanya Brittain, Event Director of Looe Music Festival, said: "We are ridiculously excited to finally be able to bring our ambitious plans to fruition, with the support of Coastal Communities Funding. Looe Music Festival can now realize its true potential.

“This particular project has been almost two years in development and finding out that our bid has been successful is the most significant moment in the charity’s history. It transforms our organisation into a fully-focused and properly resourced cultural tourism asset for our town. We’re looking forward to recruiting our new team, and to working closely with our fund manager and other local organisations to make our plans a reality.”

Mark Osterfield, Executive Director of Tate St Ives: "This is fantastic news. The Coastal Communities Fund are helping us to deliver the transformation of our iconic gallery over the next two years.

"Once refurbished and extended, Tate St Ives will attract more visitors, and generate an additional £87 million in the local economy over the following 10 years. This will not only safeguard existing jobs but also generate an additional 198 jobs in the wider jobs market."