MINEHEAD is to receive a share of £5 million in Government funding to boost employment, business and skills.
The town is in line to get £200,000 for a raft of regeneration schemes after it was identified as a "national priority" by the Department of Communities and Local Government (DCLG).
West Somerset Council will oversee the allocation of the cash through partnerships with organisations such as the town council and chamber of trade.
Priority will be given to initiatives that stimulate the local economy and improve opportunities for local businesses and the community.
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Mr Denham said seaside towns, in particular, had suffered from the economic downturn, while unemployment rates were generally higher than in other areas.
He said councils would be given new powers to deal with low-quality housing and help to secure lottery funding for heritage projects.
Cllr Michael Downes, West Somerset Council's lead member for economic development and tourism, said he was delighted Minehead had been chosen to spearhead the scheme.
He said: "We have long campaigned to attract additional funding for regeneration projects in Minehead and I'm thrilled our voices have been heard
"We have also lobbied for better skills and more job opportunities to tackle seasonal unemployment, which are key to underpinning sustained growth.
"There is great enthusiasm among traders, the tourism industry, other local organisations and the community to bring about positive change and we will continue to work with them to make sure this money is spent where it will make a difference."
Over £1 million will be pumped into five coastal towns in the South West, with the other recipients bring Plymouth, Cornwall, Torbay and Torridge. Nationally, £5 million is being given to 25 priority coastal areas.
Corinne Matthews, West Somerset's economic regeneration manager, said: "Many of the seaside strategy's aims dovetail with projects underway through the council's Working Neighbourhoods Funding.
"This funding gives us the opportunity to strengthen existing projects that are tackling the eyesore of empty high street shops, improving skills and reducing unemployment.
"It also offers the chance to widen our remit and provide some direct support for initiatives that are coming to fruition, or that can be completed in a reasonably short timescale, to give Minehead some quick wins towards its longer term regeneration targets."
Marcus Kravis, the chairman of Minehead Chamber of Trade said he was delighted by the news and hoped the cash would be used for new projects and not those already in the pipeline.
He said: "Although I truly believe that Minehead and the rest of the West Somerset coastal strip stands tall against almost all seaside towns in the UK we cannot be complacent.
"There are things that urgently need doing in Minehead to keep the town in the elite of seaside resorts to regenerate a struggling tourism market.
"The chamber looks forward to entering into discussion with the council to see how these additional funds can be used.
"Quite simply it is great news for Minehead and West Somerset and I hope that all councillors will support the projects so the community can make good use of the funds to make genuine short and long-term difference to the local economy."
Mr Denham said he hoped the money would help seaside towns become all year round destinations.
He said: "Our coastal areas are rich with history and a high quality of life that makes them attractive places to live in and many seafronts have been transformed in recent years with Government investment and support.
"Places like St Ives, Hastings and Scarborough are showing they can thrive once again through strong local leadership and dynamic businesses, no longer dependent on British weather, attracting visitors all year round. There is no reason why our other seaside towns can't flourish in the same way.
"This new strategy will help each coastal area take advantage of the new opportunities and support available - from restoring piers and creating jobs, to improving local housing, and funding creative projects that will develop stronger economies and help ensure the successful future of the British seaside."
Patrick Browne of the Coastal Communities Alliance welcomed the Government's announcement.
"Seaside towns are immensely attractive and popular places, but their distinctive social and economic structures can maintain worklessness, benefit dependency, low educational attainment and poor health, all of which are costly for the individuals and families involved and for the providers of coastal public services.
"New solutions and visions are required for our emotive coastal resorts.
"The new coastal strategy provides the framework for new thinking, while the additional funding should enable new local solutions for addressing corrosive coastal deprivation," he said.

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