The move means an investment, which could be in the region of £24 million, will be made available to support large-scale expansions in Lynn, including plans for more affordable housing.

The announcement was made by communities minister Parmjit Dhanda, who said millions of pounds of funding will be available for growth points across the region to help with projects such as schools, hospitals, leisure centres, transport links and housing.

He said: "This plan is a big step forward in addressing the demands in the East of England. It will deliver the affordable housing, better transport networks, stronger environmental protections and new jobs that the region needs."

In October, the Lynn News reported that West Norfolk Council had submitted an application for growth point status in a bid to land a £24 million cash injection for the town.

The money was being sought to help develop 7,000 new homes in the Lynn area and improve the town's infrastructure, including transport links, drainage and utilities, which would allow the expansion to take place.

However, when contacted yesterday the Department for Communities and Local Government could not reveal the exact amount of funding which has been allocated.

On hearing news of the confirmation West Norfolk Council leader Cllr Nick Daubney said: "We are absolutely delighted with the announcement.

"We have lobbied long and hard to get Lynn the recognition that it rightly deserves. The town acts as a very important centre for a region which extends beyond the boundaries of West Norfolk and is the engine room for the future growth and prosperity of the area.

"This will enable us to unlock the doors to funding opportunities which will help the town grow – not only in terms of more housing, but also by making improvements to the infrastructure, including transport, drainage and utilities.

"It will help us encourage more businesses to the area, thereby improving job opportunities. All of which will be supported by improved cultural, leisure and educational facilities.

"We look forward to working with the county council and Government Office East on the implementation of our development plan."