A £26.5m bid for restoration of the Bandstand and Redoubt Fortress was rejected by the government.
The bid was made by Eastbourne Borough Council under round two of the Levelling Up fund, which has a focus on cultural and heritage projects.
Councillor David Tutt said: “This is deeply disappointing for all those who love the Bandstand and Redoubt Fortress and were hopeful that this funding bid would give us the many millions needed to deliver a full restoration.
“I can’t help feeling the government has pulled a cheap trick on us by announcing a fund for historic landmarks such as the Bandstand and Redoubt, but then dismisses our bid. The email from government letting us know this decision basically said that as we were successful with our bid under Levelling Up 1, we have no allocations left to bid under LUF2. This was not communicated to us when we were invited to submit our LUF2 bid.
“I will contact our MP, Caroline Ansell, and ask her to lobby the Secretary of State to reconsider supporting the Bandstand and Redoubt.”