The £5m funding will enable renewal of a failing roof and other issues in the Victorian building.
On the 85th anniversary of the Blitz and ahead of a new play about it, BBC News NI talks to 93-year-old Reggie who lived through it.
The theatre will celebrate its 50th anniversary next year but is tired in places, the council says.
Organisations in Cumbria and north-east England receive a share of a £130m national fund.
The theatre says funding will "transform the experience for our audiences" for years to come.
Best-selling Suffolk author Erica James will reopen The Quay Theatre's service.
The beloved bear's stage show won seven prizes including best new musical and three acting prizes.
Rachel Zegler, star of West Side Story and Snow White, recently appeared in a new production of Evita.
Stage stars posed for pictures ahead of a night of celebration for UK theatre at the Royal Albert Hall.
