The payment of twenty million pounds to Scarborough from the Government has been paused.
The money was expected as part of the "Long Term Plan for Towns" initiative and was expected to be used for a range of regeneration projects.
But now the Scarborough Town Deal Board and the local MP have been told the government wont be able to provide any "assurances" about the funding until after the October Budget.
Scarborough and Whitby MP Alison Hume says she has been in contact with the Minister.
The money is supposed to be provided to help fund regeneration projects in the town, but the Town Deal Board and the local MP have both been told the government has paused the payments, and wont be able to provide any assurance about the funding until after the October budget.
Scarborough Councillor - Heather Philips - says it's vital the funding is delivered.
Alison Hume MP says the previous government promised money that doesn't exist but says she will be fighting for the cash.
Scarborough's Town Deal Board, who are charged with delivering many of the projects the cash is earmarked for says it has asked the government for clarification on the Long Term Plan for Towns. they say they have been seeking further updates from Minister Alex Norris and held a meeting to state the case for Scarborough and the work that has been undertaken to date.
The Town Deal Board say:
"Unfortunately, they are unable to provide any assurances until the budget review on the 30th October 2024 and we wait to see what the outcome of the programme will be."
Scarborough is not alone, a number of local authorities around the country are understood to have contacted the Government for clarification about the scheme and been told that there wont be any further clarification before the October budget.
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