The upgrade will bring the network up to 21st century standards and boost regeneration of the area. This investment is the centrepiece of the Government's forthcoming response to the Blackpool Task Force report which recommended ways to regenerate the area.
Improvements will include refurbishment of the track and tram stops out to Fleetwood, as well as 16 new fully accessible trams. The historic trams will continue to serve Blackpool's famous seafront promenade.
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The decision means that Blackpool Council can now start detailed planning for the work. Subject to successful procurement of the materials required, the full refurbishment could start in late 2009.
Harris said: "At over 120 years old, the Blackpool and Fleetwood tramway is part of the local heritage as well as an important part of the local transport system.
"I want to make sure that tourists and local people alike can continue to enjoy the tram in years to come and make sure it lies at the heart of the town's current regeneration plans."
Communities Secretary Hazel Blears said the tram investment is a huge boost for Blackpool and an important part of our package of measures in response to the Blackpool Task Force report.
The Blackpool and Fleetwood Tramway carries nearly 4 million passenger trips a year, around 75% of which are visitors to Blackpool.
Blackpool's good news comes on the same day that Tom Harris also announced the final go-ahead for a £102m package of improvements to Manchester Metrolink.
(GK/JM)
