Bold Regeneration Plans Revealed For Scarborough In New Mayoral Development Zone

Scarborough is set to benefit from an initial £8 million regeneration boost as part of a proposed Mayoral Development Zone aimed at transforming the town centre and creating thousands of new homes.

A bold new approach to boost jobs, housing and regeneration across York and North Yorkshire has been published today, with Scarborough poised to receive a significant multi-million-pound investment.

Proposals have been set out to create three Mayoral Development Zones to drive forward regeneration and development opportunities in priority areas. Alongside the Selby Growth Zone and York Central, Scarborough has been identified as a key location ready to move forward with transformational plans.

Mayoral Development Zones are a key tool available to Mayors through devolution, allowing them to designate specific areas as a priority for development. The zones provide a strategic framework to bring together developers, landowners, and local authorities to attract private sector investment and align public sector funding.

To kickstart the impact of these zones, an initial £10 million regeneration fund has been proposed. According to a report by the Director of Economy, up to £8 million of this capital allocation is earmarked specifically for Scarborough. This substantial share reflects the relative maturity of the town's schemes and its ability to leverage match funding and private sector investment.

The report outlines the entrenched socio-economic challenges facing North Yorkshire's second-largest town. Scarborough currently has the highest levels of deprivation within the region, with nineteen areas classified within the twenty per cent most deprived in England. The local economy is heavily reliant on tourism and retail, leaving many residents with insecure, low-quality jobs.

Furthermore, the town suffers from market failures, including low land values, high construction costs, and limited commercial rents, which have deterred private investment and left key sites vacant. Poor transport connectivity also restricts access to employment and essential services.

Despite these challenges, the report highlights that Scarborough benefits from significant opportunities and assets that set it apart from many other coastal towns. It boasts a university campus, a county cricket ground, a major outdoor concert venue, and improving rail connections.

The town has already benefited from major national government investment, including a £20.2 million Local Regeneration Fund and £20 million in Pride in Place funding. The new Mayoral Development Zone will build on existing progress, such as the approved Station to Shore masterplan and the redevelopment of the former Brunswick shopping centre by a private developer.

The regeneration plans aim to deliver major improvements to the town centre, bring forward leisure and tourism developments, and unlock thousands of new homes, including one thousand properties at Middle Deepdale.

Mayor David Skaith said:

"This is about using the full powers available to the Mayor through devolution to making a real difference to people’s everyday lives; good jobs, affordable homes, and thriving communities.

"The three areas that will become MDZs have the ability to deliver thousands of new homes, unlock thousands of new and better jobs, and attract billions of pounds of investment into our region.

"Some of the sites are ready to go and just need that final push, others need the final pieces of investment to get them going. Each MDZ will tailored to get development going and delivered quicker.

"I am creating an initial £10m of investment for the MDZs, and will work with our local authority partners to ensure we deliver the government funding and private sector investment needed.

"This is an important step in setting out how we can bring investment into our communities and make sure growth benefits everyone."

The challenges relating to Scarborough’s regeneration are based on viability rather than land ownership or planning issues. With willing landowners and developers already in place, the zone will provide the necessary investor confidence to unlock further phases of development.

North Yorkshire Council’s leader, Councillor Carl Les, said:

"We are committed to bringing the best possible opportunities for our communities in North Yorkshire, whether that be better career prospects, the chance to own their own home or regenerating our towns and villages.

"The proposed Mayoral Development Zones are due to offer the opportunity to build on the work we have been undertaking to support all areas of the economy in places such as Scarborough, from the leisure and tourism sectors to the harbour, fishing and other marine activities such as the off-shore windfarm industry.

"Whether that is the prospect of bringing 7,000 new jobs to the Selby area or creating thousands of new homes and new leisure and tourism opportunities to regenerate Scarborough, this will be so important to help build on our ambitions.

"We will continue to work closely within the combined authority to make sure that these plans do bring real benefits to our residents and businesses in both the Scarborough and Selby areas, as well as ensuring the positive impact can be felt elsewhere in the county."

The report and the proposals for the Mayoral Development Zones will be discussed at the York and North Yorkshire Combined Authority Cabinet meeting on the 2nd of July 2026.