Skegness station will have a new passenger area including a cafe and shops.
The money will be used to "completely reconfigure the layout of the station and improve passenger flow", East Midlands Railway said.
Work has started and will continue throughout 2024, with plans to link the railway hub to the bus station. "This first phase of the development will see work begin at the front of the station, where there will be a new customer waiting area and the red star building will be brought back to life after many years," he said.
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