The UK's historic ships emerged as winners in the latest round of Heritage Lottery Fund (HLF) grants.

A £21m grant has been earmarked for the conservation of 16th-century warship the Mary Rose and the construction of a museum in Portsmouth Historic Dockyard by 2012. It will house the ship's hull and almost 70 per cent of artefacts recovered from the vessel. The combined project will cost about £35m.

The HLF has also awarded a £10m "uplift" grant to cover the cost of restoring the Cutty Sark following last May's fire. The funding supplements an HLF grant of £11.75m allocated in September 2006.

The Cutty Sark Trust has secured £31m against the projected cost of the £35m conservation project, and aims to open the ship in 2010.
But the HLF turned down applications from some major institutions.

These included the Tate and the National Portrait Gallery, which were hoping for a £9.9m cash boost to build a joint National Art Collection Centre adjacent to the Tate's existing art storage area in Southwark by 2011.

Meanwhile in Manchester, the Museum of Science and Industry's failed bid is a set-back for its £54m Revolution MOSI redevelopment plan. A spokeswoman said the institution will press ahead with the MOSI revamp and restore its Air and Space Hall later this year.

The institution has benefited from a large rise in funding from the Department for Culture, Media and Sport. Its capital settlement (funding for new projects and buildings) is increasing from £930,000 for 2008-09 to £1.01m in 2010-11. The museum has previously received £350,000-£400,000 a year.