A children’s theatre is a step closer to a £2.5million funding boost to transform its premises as it plans how to spend an initial grant of hundreds of thousands of pounds.

The Polka Theatre in Wimbledon’s Broadway is one of only 16 organisations across the country to be invited to apply for the second stage of funding from the Arts Council England, it was announced yesterday.

The grant, worth £2.5million, would mean the theatre would transform the building with the creation of a national centre for Early Years Theatre.

This would have a new auditorium, a multi-purpose rehearsal studio, a creative learning studio, flexible, digitally-equipped spaces for community use and extended café and retail space.

An initial grant of £226,098 to support the development of its plans for stage two has already been awarded.

Peter Glanville, chief executive and artistic director at the Polka Theatre, said: "We are thrilled to have stage one of our Arts Council grant approved for our proposed theatre redevelopment.

"As well as a vote of confidence in Polka, it is wonderful to have this further recognition of the importance of investing in the arts, artists and venues dedicated to children."

Funding of £57million has been made available from the Arts Council for 16 large capital projects across the country.

Applicants will now be invited to complete a stage two application within the next 18 months, showing plans at a detailed stage of design and development.

This will allow the Arts Council to assess the projects against criteria including long-term sustainability and resilience, the potential for partnership funding, and whether the organisation is able to manage and deliver the work proposed.

Funding will be awarded if the organisations are successful at the second stage of the application process.