Millie Earl, Bournemouth, Christchurch and Poole (BCP) Council’s leader, said the announcement was “good news for our communities”, which she said have been overlooked “for too long”.
But she said cuts to some grant funding earlier this year mean it must “continue to call on government to provide sustainable funding for services and improvements,” Earl added.
Council tax bills will rise by 6.74% in the BCP area from next month after £14m of cuts were approved by councillors in February.
But Alex Baker, MP for Aldershot and Farnborough, said the money for Cherrywood will be “transformational”.
“Through this funding we’re bring investment to those who need it and putting power back in the hands of local people,” she added.