Local councillors have supported an £18.5 million public funding package to redevelop Scarborough's vacant Brunswick Centre, while acknowledging concerns over the level of financial risk involved.
A major redevelopment of a vacant Scarborough shopping centre looks likely to move forward with an £18.5 million public funding package, promising hundreds of jobs and a new multiplex cinema.
Local councillors have welcomed North Yorkshire Council's decision to approve it's part of the financial intervention to transform the boarded-up Brunswick Centre, despite voicing concerns over the significant level of public money required.
The proposed funding includes an £8 million loan from North Yorkshire Council and a further £10.5 million in non-recoverable grants from the Scarborough Neighbourhood Board and the York and North Yorkshire Combined Authority to support the creation of a cinema, indoor leisure facilities, and retail outlets.
It's also been revealed the non-recoverable element of the public funding represents 25% of the total cost of the works to revitalise the centre.
Highlighting the potential benefits for the town, Councillor Rich Maw also questioned the financial safeguards protecting the taxpayer.
Councillor Rich Maw said:
"We all want the Brunswick centre in Scarborough redeveloped, we need the investment, jobs and a town we can be proud of, and we have heard promises of 850,000 visits a year, 45 million in spending and over 500 jobs, and if these figures become a reality, that will be a fantastic result for Scarborough.
But we are talking about 10 and a half million pounds in public grants and a further 8 million in a council loan on a scheme that currently doesn't have planning permission.
If things go wrong, how much of that money could we realistically get back, what protections have we got, could we in Scarborough be left with another white elephant."
Acknowledging the financial exposure for the local authority it's deputy leader Councillor Mark Crane remained optimistic about the town's future.
Councillor Mark Crane said:
"We're putting 8 million pound in, if the first stage goes ahead, so potentially up to 8 million pound would be a risk, but I think this will be a positive for Scarborough."
The site closed to the public in September 2025 and requires a new planning application after previous permissions lapsed. The total public funding package will be released in phases to manage development risks.
Councillor Liz Colling admitted her initial reservations about the level of public expenditure required to get the project moving.
"It's taken me some time to come to terms with the fact that if we want this development to proceed, and I can assure you that all of Scarborough wants the development to proceed on that site, then we are going to have to put some public money in.
I remain concerned about the size of the contribution from the public purse, and I know it's not this authority, but there is money coming from elsewhere."
Clarifying the scale of the public intervention compared to the overall development, North Yorkshire Council's Head of Commercial, Neil Hughes, provided context on the figures.
Neil Hughes said:
"With regard to the gap funding. The 10 the 10 and 1/2 million is approximately 25% of the total cost of the scheme."
The project is expected to generate around 414 direct operational jobs and deliver an estimated gross annual spend of £45.2 million in the local economy.
Councillor Heather Philips focused on the vital employment opportunities the scheme could provide for young people in the area.
Councillor Heather Philips said:
"It is a shame now that we have to have more public contribution, but if we're going to create the 400 to 500 new jobs, which are possibly going to be aimed at people who are getting their first job, then that is amazing because we're able to get people into employment.
We have a problem with youth unemployment, particularly in Scarborough, and I think the figure for the economic benefit each year is sort of 40 to 45 million. So frankly, we'll soon make our contribution back. So I'm fully supportive of this."
The Brunswick Centre is currently in private ownership, but official reports confirm the redevelopment is not viable without public sector intervention.
Councillor Simon Myers explained why the council needed to step in to revive the high street and prevent further economic decline.
"These strategies and schemes come with an element of risk. If there wasn't a risk in it, the market would fix it for us. The reason we have to become involved is because the market won't fix it.
But nobody can be unaware of the potential for regeneration on that site. But also, what a drag that empty building is on the local economy. And it could be transformative of a very attractive part of Scarborough that has seen better days."
North Yorkshire Council approved it's initial £1m investment and a further loan of £8m at a meeting on Tuesday. The Scarborough Neighbourhood board agreed it's financial contribution (£3.5m from the Pride in Place Programme) last Friday in the form of a grant, the York and North Yorkshire Combined Authority is expected to approve its contribution of £10m at a meeting on November 6th.
Plans to redevelop the The Brunswick Centre have been talked about for several years, planning permission for an initial cinema scheme was obtained in 2023 but has since expired. The former shopping centre closed it's doors a year ago since when the centre has stood vacant and boarded up.
If funding for the project is approved it would be 2029 before the new venue opens its doors to the public.
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