A major redevelopment of Scarborough's vacant Brunswick Centre into a multiplex cinema and leisure hub is a step closer after a multimillion-pound funding package was unanimously approved.
North Yorkshire Council’s Executive committee has unanimously approved its share of a crucial funding package to kickstart the long-awaited redevelopment and transform the Brunswick Centre into a new six-screen multiplex cinema, major retail stores, and family leisure facilities.
The former shopping centre, which closed to the public and was boarded up in September 2025, will be revitalised to boost the town's year-round appeal. The ambitious project is expected to create 414 direct operational jobs, generate around 850,000 annual visits, and bring an estimated £45.2 million in annual spending to the local economy.
A collaborative public sector funding package of up to £18.5 million will bridge the viability gap for the private developer, Scarborough Brunswick Limited. The financial intervention includes an £8 million concessionary loan from North Yorkshire Council, alongside a proposed £10.5 million non-recoverable grant from the York and North Yorkshire Combined Authority and the Pride in Place programme.
An initial £3 million tranche, split equally among the three public partners, will fund pre-construction activities such as detailed design, strip-out works, and financial validation.
North Yorkshire Council has now agreed to provide an £8 million recoverable loan from council reserves as part of the finance package. Unlike the non-recoverable grants supplied by partner agencies—including £7 million from the York and North Yorkshire Combined Authority and £3.5 million from the Pride in Place programme—the Council’s contribution is structured as a recoverable loan to bridge the project’s commercial viability gap. North Yorkshire Council will also serve as the lead coordinating body overseeing the administration of the overall public funding package
To manage financial risk, the funding will be released in strict phases, beginning with a £3 million pre-construction tranche split equally between the three public partners to fund design, planning, and due diligence. Should the project abort during this early stage, the Council's maximum non-recoverable exposure is capped at £1 million. Following Full Business Case approval, the remaining £7 million loan will be drawn down for main construction works.
The loan will remain interest-free for up to three years post-completion before commercial interest rates apply, with full repayment returned to council reserves upon the final sale of the asset to an institutional investor.
North Yorkshire Council's Deputy Leader, Councillor Mark Crane, highlighted the urgency and potential of the scheme.
Councillor Mark Crane said:
"This is, I think, an opportunity for Scarborough, which, if we don't take this opportunity now, it will be a decade or more before any similar opportunity arises.
At the moment it is shut down and boarded up. This report is asking that we initially give £1 million of council money and this will be match funded by both the mayor and the neighbourhood board, and I was at the neighbourhood board on Friday and it was voted through, and there was a lot of strong support for the scheme.
And the scheme will be to turn this building into something that will centre Scarborough and cause people I believe to spend more time and money in Scarborough when they're travelling there, and give the opportunity for people who live in Scarborough to visit a first class cinema and have offer of other things to do and places to eat as well as significant shopping offer."
He also noted the collaborative effort required to push the project through its initial phases.
Councillor Mark Crane added:
"SGI bought this building some time ago, that's currently boarded up, but this scheme would allow us working with the neighbourhood board and the combined authority to bring money forward, initially £1 million from each of the three for the pre-construction phase, but if that is successful, and I sincerely hope that it is, then the further moneys that are noted in this report.
But this is a real unique opportunity for Scarborough. I've said before and I've said publicly, that I believe this will cause people to spend more time and money in Scarborough and making it an even better place to go and visit, and that will be year round of course as well because of the cinema etc offers."
The scheme aims to address issues of anti-social behaviour by increasing evening footfall and natural surveillance. It aligns with Scarborough’s 'station-to-shore' Blueprint vision to create a vibrant, high-quality destination.
Scarborough Councillor Heather Philips welcomed the development as a much-needed boost for the town's evening economy.
Councillor Heather Philips said:
"I'm very encouraged. We've had 25 years of various projects discussing what we need in Scarborough and we always come up with a central draw, because at the moment, Scarborough is not a fun safe place in the evening. That's what it feels like.
Most of the people that would be coming to the cinema will be local people. If you want to go to Wetherspoons, that's fine. But it's not going to bring the the families that we need in to Scarborough."
The next steps involve securing the remaining approvals from partner organisations.
Corporate Director for Community Development, Nic Harne, explained the upcoming timeline for the partner funding.
Nic Harne said:
"We understand that the combined authority be asked to make a decision on the 6th of November this year to agree the tranche one grant funding of £1 million and also to improve in principle the ring fencing of up to £6 million to support tranche two.
The structure of the grant two funding will depend on the outcomes of the first phase of the project, for example, review review of tranche one, the business case, completion of due diligence, legal checks, and further report to the combined authority."
If all conditions are met and planning permission is granted, the construction period is estimated to take 15 months, eventually transforming the currently underused site into a modern, thriving commercial and leisure hub for the Yorkshire Coast.
Related Stories
27 Oct 2026 - A major transformation of Scarborough's vacant Brunswick Centre into a cinema and leisure complex is a step closer after North Yorkshire ...
23 Oct 2026 - Plans to transform Scarborough's former Brunswick Centre into a multiplex cinema and leisure destination must undergo a new planning ...-
21 Oct 2026 - Scarborough's mayor is demanding stricter scrutiny of an £18.5 million public funding package for the Brunswick Centre redevelopment, ...
-
20 Oct 2026 - A multi-million-pound transformation of Scarborough's vacant Brunswick Centre into a major leisure destination will take until mid-2029 to ...
18 Oct 2026 - North Yorkshire Council is set to consider an £18.5 million public funding package to transform Scarborough's vacant Brunswick Centre into a ...
Six-Year-Old Boy Tackles 30-Mile Coastal Walk For Veterans Charity
Runners Take To Scarborough Streets To 'Lift The Curfew' On Winter Nights
Residents Divided Over Plan to Extend Haven Holiday Park Season
Scarborough And Whitby MP Elected To Influential Culture, Media And Sport Committee
North Yorkshire Plans To Expand Rural Scheme Combining Police, Fire, And Ambulance Roles
Free School Uniform Giveaway Returns To Scarborough This Week
Salvaged Peasholm Park Illuminations Go On Display After Storm Boelo Cancellations
Extracurricular Opportunities Set To Expand For Pupils In Scarborough And Whitby
New Floodlit Sports Hub Approved For Hunmanby Playing Fields
Concerns Public Say On New Housing Reduced As Planning Rules Shift To Officers
Illegal Vape and Tobacco Sellers Face New Penalties Across North Yorkshire
