Mr Parry said: “This grant is for the infrastructure, the work that is being done now and includes things like flood protection, dredging of the marine lake and levelling of the site.

“The NWDA’s investment in public realm will complement the commercial scheme which will deliver the foodstore, hotel, upgraded marine lake and sailing school, outdoor lido and the commercial and leisure facilities such as cinema, fitness centre, restaurants and bars. All of this will undoubtedly provide a great boost to the local economy in this difficult time, as already achieved.

“We will continue to work closely with Wirral Council to create a new New Brighton for the people of Wirral.”

Steve Broomhead, chief executive of the NWDA, spoke of the project’s importance: “Brand New Brighton is the largest single transformational project in the wider Mersey Waterfront regional park initiative and a significant signature project for the Liverpool city-region.”

He said the scheme would “build on the achievements of the first phase, which delivered the stunning Floral Pavilion and “boost the town’s economy and capitalise on its prime waterfront location”.

Last year the Daily Post revealed that an extra £1m of public funding was added to help the key development compensate for a dramatic fall in commercial property prices.

The report, by deputy chief executive Jim Wilkie, said the NWDA had put aside £2.75m for New Brighton Phase Two to bridge a “funding gap”, but a collapse of the commercial property market led to an increase in its contribution to £3.9m.