Durham council will administer the fund, manage all financial governance and submit regeneration plans to the government for approval.
However, Councillor Karen Allison, cabinet member for leisure, tourism and high streets, claimed the scheme would not provide a simple fix.
“Although this funding will boost our work in regenerating these areas, it doesn’t undo the lack of government support for our high streets over many years,” she said.
“Until we can be honest that the national funding system is struggling, councils like ours will remain in an extremely difficult position.”
The first substantive delivery payments are expected in March 2027, the Local Democracy Reporting Service said.
