Historic landmark Alexandra Palace has secured a £320,000 grant for urgent repairs to parts of the 140-year-old building.

English Heritage has awarded the money to repair the palace’s south terrace and the roof of the Victorian Theatre, which has been closed to the public for years on health and safety grounds.

The rest of the money will go towards the long-term conservation plan drawn up by managers last year.

Councillor Matt Cooke, chair of the Alexandra Park and Palace Trust Board, said he was “delighted” by the announcement, which comes after Haringey Council announced in its budget on Tuesday that it would cut its £2.1 million subsidy to the palace by £500,000 next year.

He added: “Although in the very early stages of regenerating this magnificent heritage property, with further investment and careful stewardship we are very optimistic that we will be able to achieve our ultimate goal to develop and enhance this fantastic cultural destination and resource for the local community, Londoners and visitors from across the world.”

But the money will only make a small dent in the £29m managers of the building estimated last year it would cost to restore the building before any work to transform the venue can begin.

In May 2011, bosses announced they would embark on an ambitious plan to turn the palace into a live music venue similar to the O2 Arena – although last month chief executive Rebecca Kane resigned to manage the Greenwich venue.

The trust hopes that deciding on an ultimate purpose for the building will draw a line under a series of blunders, including an aborted plan to sell off the palace to a private developer in 2007.

An independent report into the dispute estimated that losses to the charitable trust running the palace were in the region of £1.5m, while former council leader Charles Adje was found guilty of misconduct over the affair last year.