Taxpayer Millions At Risk In Brunswick Centre Regeneration, Warns Scarborough Mayor

Scarborough's mayor is demanding stricter scrutiny of an £18.5 million public funding package for the Brunswick Centre redevelopment, warning that millions could be lost if the project collapses.

Millions of pounds of public money could be lost if a major regeneration project in Scarborough fails to get off the ground, the town's mayor has warned.

Plans to transform the vacant Brunswick Centre into a multiplex cinema, retail and leisure destination rely on an £18.5 million public funding package.

The proposed financial support includes an £8 million loan from North Yorkshire Council, £7 million in non-recoverable grants from the York and North Yorkshire Combined Authority, and a further £3.5 million from the Pride in Place programme.

However, Scarborough Mayor Councillor Thomas Murray has raised serious concerns about the financial risks involved, particularly an initial £3 million earmarked for pre-construction activities.

According to a North Yorkshire Council executive report, this initial funding will be split equally between the three public bodies to cover design development and strip-out works. The report acknowledges that if the scheme does not progress beyond this phase, the expenditure may be non-recoverable, leaving the council exposed to a £1 million loss.

Councillor Murray said:

"I want to see the Brunswick Centre transformed. New cinema, restaurant, jobs, a thriving town centre, I want a regenerated high street, and this is exactly the kind of ambition that Scarborough needs. But I think we do have to have a look at the public money that's involved there.

8 million pounds from North Yorkshire Council, 7 million pounds from York and North Yorkshire Combined Authority, and 3.5 million pounds from Pride in place. So it's a lot of money, is it 18.5 million pounds of public money.

My biggest concern with this is the total of 3 million pounds, is for exploratory works, but the potential is that that 3 million pounds isn't returned to those that lend that money out to Scarborough Group International.

So it's an incredible concern to me that 3 million pounds potentially could just be wasted down the drain."

The mayor also drew comparisons to the controversial Alpamare waterpark development, where a £9 million loan from the former Scarborough Borough Council ultimately had to be written off.

He questioned the commercial viability of anchoring the new development with a cinema, given the current challenges facing the industry.

He added:

"If we look at the Alpamare, that was a £9 million loan that the Scarborough Council gave out, and North Yorkshire Council had to write it off because they weren't going to see a return on that. And what the residents are seeing now is another loan for a potentially another business.

A cinema where nowadays people watch the movies at home, Netflix and and Amazon because other streaming platforms are relatively cheap. So cinemas, I think 22 have closed this year, so it's not a it's not a great business.

Scarborough needs a principal attraction in the town, and a multiscreen cinema is a great idea, but I would really like to see scrutiny on this plan to ensure that it is a viable business and that this loan will be repaid."

Writing on social media, Councillor Murray demanded proof that the development is commercially viable and that proper safeguards are in place to protect taxpayers from what he described as another expensive lesson in how to lose money.

Despite the concerns, North Yorkshire Council officials maintain that public sector intervention is essential to bridge a viability gap and unlock the site's potential.

The council's executive report estimates the completed redevelopment could attract around 850,000 annual visits, generate £45.2 million in yearly spending, and create more than 400 direct jobs.

To mitigate risks, the council plans to release funding in phases subject to robust conditions and will take a first charge over the property as security for the initial phase of funding.

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