The new owners of Dreamland have turned down £4 million worth of funding.

In a statement from Thanet District Council (TDC), a spokesperson said they have been told theme park bosses do not intend to accept the funds from the Margate Town Deal.

At the end of last year, LN-Gaiety acquired a significant controlling interest in Sands Heritage, the owner of the park.

LN-Gaiety is a joint venture between Live Nation and MCD Production’s Gaiety which, as of December, took ownership of 75% or more of the shares in Sands Heritage.

But now the global concert giant has refused the £4m, which was allocated to go towards the restoration of its Art Deco, seafront cinema building, meaning it needs to be allocated elsewhere.

The funding comes from a total of £22.2m which was awarded to TDC in 2021.

“We are committed to ensuring that approved Margate Town Deal projects benefit from this funding and that this is achieved by the March 2026 deadline,” the statement on TDC’s website says.

“The first step will be to get clarification from the government on what is possible.

“It should be noted that the funding cannot be reallocated to a new project that does not already have government approval through the Margate Town Investment Plan.

“With any reallocation of this funding, the outputs such as jobs and refurbishment of heritage buildings will still need to be met.

“An overview of the situation will be provided in a report, for Cabinet members to note at a meeting on Thursday, February 29.”

Eddie Kemsley, CEO at Sands Heritage says: “We will develop a plan for the cinema building that is both financially viable and in keeping with Dreamland’s history of entertainment.

“With that in mind, we have taken the decision not to accept the £4 million from the Margate Town Deal fund.

“We hope this money can be redistributed to other projects to benefit the regeneration of Margate and its legacy of leisure and entertainment.”

The Margate Town Deal funding was set to be used to help the community flourish by providing opportunities for those living there and making the town "realise its full potential".