Museum's £445k revamp for 'major coup' exhibition
Blackburn Museum and Art Gallery secured the exhibition with the largest ever number of loans from the British Library to an institution outside London.
Councillors said it proved the wisdom of supporting the 101-year-old museum during the years of local government austerity.
Blackburn with Darwen Council said a refurbishment would ensure the museum could meet the conditions necessary for the British Library's loan of objects.
These include best collection of manuscripts and coins in the country left to the museum by local rope maker Robert E Hart.
The money to fund the revamp of the galleries has come from a government rebate.
The council's public health boss Damian Talbot, who used to head the culture department, said: "It is fantastic and brilliant it is hosting this exhibition.
"Blackburn Museum is a wonderful resource for the borough.
"It was so important that we kept the Hart manuscripts and other collections together."
Council leader Phil Riley said: "A few years ago there is no way the museum could have been in a position to have accepted an exhibition like this from London but we have got there now.
"It is a tribute to everyone who worked to keep this fantastic asset."
The £445,000 will be spent on the refurbishment of the Hart Gallery displays as well as security and improved visitor facilities, the authority said.
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