Hackney’s historic Hoxton Hall has been handed a lifeline with the announcement it will receive hundreds of thousands of pounds in lottery money.

The music hall, built in 1863, has been awarded �207,400 in Heritage Lottery Fund development money, which bosses say will ensure it remains open as a theatre and events space well into the future.

They were forced to deny in March that the theatre was at risk of closure after missing out altogether on Arts Council England support.

They say this week’s lottery grant will go towards restoring the grade two-listed music hall - one of only four remaining in the UK - and widening its archive and research activities with young people in Hackney.

The theatre will now be able to apply for a full �2m grant over the next two years.

Hoxton Hall group director, Hayley White, said: “We are absolutely delighted with this news. The funding comes at a very important time in Hoxton Hall’s development and is the result of a lot of hard work by a dedicated team of staff and volunteers. We are grateful to the Heritage Lottery Fund for supporting Hoxton Hall’s commitment to exploring, preserving and sharing its heritage and stories.”

Sue Bowers, head of HLF for London, said: “Hoxton Hall is both a heritage gem and a much-valued community building – the perfect space to bring together people of all ages and backgrounds and get them involved in a range of cultural activities. We are pleased to be giving initial support for the hall’s innovative plans and look forward to seeing the project develop further over the coming months.”