Scarborough To Become First Coastal Mayoral Development Zone

Scarborough has been designated as the country’s first coastal Mayoral Development Zone, unlocking millions of pounds in investment to transform the town's high street, harbour, and housing.

Scarborough is set to become the first coastal Mayoral Development Zone in the country, marking a significant step forward for urban regeneration on the Yorkshire Coast.

The York and North Yorkshire Combined Authority has approved plans to establish three Mayoral Development Zones, which are designed to accelerate economic growth, attract private investment, and deliver new homes. Alongside Scarborough, the initiative will also focus on the Selby Growth Corridor and York Central.

To launch the ambitious programme, an initial £10 million regeneration fund has been proposed. According to a recent cabinet report, up to £8 million of this funding could be allocated to Scarborough, reflecting the advanced stage of its local development schemes and its potential to attract further private sector investment.

The town was identified as a priority area due to its entrenched socio-economic challenges. Data from the Indices of Multiple Deprivation shows that Scarborough has the highest levels of deprivation within the region. The new zone aims to tackle these issues by addressing market failures, improving transport connectivity, and revitalising vacant commercial spaces.

Mayor of York and North Yorkshire, David Skaith, outlined the vision for the coastal town.

David Skaith said:

"These three new mayoral development zones are the clearest signal that we have sent to date and which we are the greatest opportunities for economic growth, new jobs, new homes and urban regeneration in the county.

In Scarborough, we're setting up the first male development zone in the country for a coastal community. It will focus on high street, urban renewal, improving the visitor experience but more importantly, residents experience of the town.

Wworking hand in glove with North Yorkshire Council, the neighbourhood board, it will also coordinate, streamline housing development, job opportunities, ensuring that more people can stay, live and work in the town that they call their home."

The report sets out the challenges facing Scarborough and the reason why the new MDZ is being created in the town.

"Scarborough faces entrenched socio-economic challenges, including high levels of deprivation across employment, health, skills, and crime. Its economy is reliant on tourism and retail, leaving many residents with insecure, low-quality jobs.

Poor transport connectivity restricts access to employment and essential services. At the same time, safety concerns in the town centre undermine confidence and vitality. Critically, Scarborough also suffers from market failure: low land values, high construction costs, and limited commercial rents deter private investment, leaving key sites vacant. The high street lacks diversity, green space, and leisure options, contributing to health inequalities and negative perceptions.

Addressing these interconnected issues and delivering on the Mayor's vision for healthy and thriving town centres requires a large-scale, coordinated, strategic response to unlock regeneration, improve connectivity, enhance the public realm, and create inclusive economic opportunities."

But the report also sets out the opportunities that exist in Scarborough, adding:

"However, Scarborough also benefits from significant opportunities, with assets that set it apart from many other UK coastal towns. It has a university campus, a county cricket ground, a major outdoor concert venue that attracts world class acts, and strong – and improving - rail connections. It has benefited from major national government investment in recent years through a £20.2m Local Regeneration Fund and £20m Pride in Place funding.

It has an approved Station to Shore masterplan for transport and high street regeneration, and private developer with planning permission to redevelop the former Brunswick shopping centre. To begin to realise this phase of development North
Yorkshire Council have also indicted they are willing to invest significant capital to contribute towards the funding gaps needed to drive forward the proposals"

Mayor Skaith added:

"It's incumbent on to make sure that this is totally transformational in development, it doesn't leave residence behind giving the new jobs and opportunities that we all want to see.

These are like clearly great opportunity. We have to transform York North, York for the residents of business we serve. I think it's just a really exciting opportunity for the patch"

During the cabinet meeting, the Leader of North Yorkshire Council, Councillor Carl Les, emphasised that the project must encompass the town's historic maritime assets.

Councillor Carl Les said:

"I'm very happy to support these recommendations, but can I just make a plea about the Scarborough one? We keep referring to the High Street, etc. The work that has been done in Scarborough to identify what the economic opportunities are, it's called Station to Shore, and we've got to reflect that it's not just the High Street, it actually goes all the way down to the harbour and includes the harbour and maritime activity as well."

The Mayoral Development Zones are informal, locally created delivery mechanisms rather than statutory bodies, allowing for a more flexible approach to strategic development without the heavy running costs of formal corporations.

The Mayor's Director of Economy, Andy Kerr, detailed the strategic importance of the zones for the wider region.

Andy Kerr said:

"This report represents our significant step forward in unlocking major regenerative opportunity across the region with the proposal to create three major development zones called MDZs.

MDZs allow us to target specific areas focused regeneration and growth. Unlocking development opportunities and attracting private investment and aligning public sector funding.

It is proposed that we create three MDZs at this stage in our evolution. First of those is Scarborough, which has a clear master plan, the major brown field redevelopment opportunity, both leisure and tourism and 1000 new homes at Middle Deep-Dale."

£10m has been ring-fenced for the three MDZ's with up to £8 million of the capital allocation earmarked specifically for Scarborough reflecting the relative maturity of the town's schemes and its ability to leverage match funding and private sector investment.

Andy Kerr said:

"To kickstart these zones, a report proposes an initial £10 million MDZ regeneration fund.

Governance of the zones will be collaborative, working critically with the local authorities, but with oversight from the Mayor and local delivery partners, and all funding decisions will be subject to robust business case and assurance processes.

The designation of these mayoral development zones represents a bold step forward for York and North Yorkshire, targeting investment where it is needed most, fostering inclusive growth and ensuring our communities benefit from the opportunities that devolution brings."

The two other areas identified for MDZ's are the Selby Growth Corridor and York Central.

Selby is part of a large-scale generation programme led by North Yorkshire Council, alongside major commercial development opportunities, such as Olympia Park which could create up to 3,250 new jobs and Gascoigne Interchange with potential for 4,500 FTE jobs.

York is home to York Central, one of the largest city centre regeneration schemes in the UK, with potential to deliver 2,500 new homes and a bold new Innovation Hub.

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