Work to develop thousands of new homes at Shoreham harbour have stepped up a gear after the Government awarded the project a multimillion- pound cash injection.

Proposals to redevelop the site were boosted by more than £3 million to prepare the land for development and kick-start efforts to provide essential infrastructure such as transport links, schools, doctors’ surgeries and better flood defences as well as beach access and green spaces.

Backers believe the site is capable of providing up to 10,000 homes as well as creating more than 7,000 jobs.

Over the summer the Government named the site as a Growth Point, recognising its potential contribution to boosting economic development in the area and tackling poverty.

Yesterday, the Department for Communities and Local Government said Adur District Council and Brighton and Hove City Council, which have promoted the project with the encouragement of the South East England Development Agency, would receive £3.2 million in a two-year funding settlement as part of its national Growth Point scheme.

Neil Parkin, leader of Adur District Council, said: “This will add huge momentum to our goal of creating a shining example of economic growth and sustainable homes.”

Mary Mears, leader of Brighton and Hove City Council, said: “Brighton and Hove needs job opportunities and housing and the Shoreham harbour regeneration offers a great opportunity. This will help support our objectives for growth on the South Coast.”

Plans for regenerating the harbour have existed for nearly a decade, but supporters of the latest scheme are confident new homes, jobs and community facilities could begin to be built within the next three years.

Longer-term regeneration could last up to 20 years.