The Band on The Wall, a live music venue in Manchester, has been awarded £3.2m in combined grants by Arts Council England and the Heritage Lottery Fund to go towards a £4m development project.

The scheme includes plans for a new annexe – which will house facilities for performances, education, recordings and a music archive – as well as improvements to the existing main space and restoration of the building’s original 19th century features.

Ian Croal, chief executive of Inner City Music, the charity that runs the venue, said: “We are delighted with the Art Council and the Heritage Lottery Fund’s support of our project to reopen the Band on the Wall.

“Together with the support of Manchester City Council, these grants will enable us to provide Manchester with a stage for the best music from around the world and a platform for the finest local talent.”

Peter Hewitt, chief executive of Arts Council England, added: “We hope our funding will enable the venue to build on its reputation and become a centre of excellence that will foster the musical talent of tomorrow.”

The Band on the Wall became a music venue in 1937, and has hosted bands such as Joy Division, Simply Red and The Buzzcocks.