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Major funding to be considered for retail and leisure scheme

Date: 19 October 2026
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Brunswick Centre

Plans to transform Scarborough’s former Brunswick Centre into a major leisure, retail and hospitality destination could benefit from millions of pounds in funding to help to kickstart the scheme. 

The proposed redevelopment would create a new town centre attraction featuring a six-screen multiplex cinema and family-focused leisure facilities alongside food and drink outlets and new retail units. The aim is to bring a key town centre site back into use and create a year-round destination for residents and visitors.

Members of our executive will meet on Tuesday next week (27 October) to consider plans to allocate up to £8 million in loan funding to the developer, Scarborough Group International, which is overseeing the proposed scheme. 

If approved, we would contribute an initial £1 million that would be matched by funding from the York and North Yorkshire Combined Authority and the Pride in Place programme overseen by the Scarborough Neighbourhood Board to create a total £3 million package for pre-development work.

The funding would help cover detailed design work, investigations into the existing structure, internal demolition of parts of the centre and the preparation of a new planning application.

Deputy leader and executive member for open to business, Cllr Mark Crane, whose responsibilities include regeneration, economic development and the visitor economy, said: “The site of the former Brunswick Centre is in the heart of Scarborough and would be an important element for our plans for regeneration across the town and the wider coastal area. 

“These proposals have the potential to transform a large vacant site into a vibrant destination that will attract both residents and visitors throughout the year.

“We will carefully consider the proposals next week to ensure that the best value is offered to our taxpayers in North Yorkshire before making a decision on whether the funding should be approved.” 

The former Brunswick Centre closed in September last year and the site has since been secured while plans for its future are developed.

The proposed redevelopment is expected to deliver significant economic benefits, including the creation of more than 400 direct jobs and about 160 jobs through the supply chain. The scheme is also forecast to generate up to £45 million of annual spending and attract an estimated 850,000 visits a year.

Official figures show that Scarborough sees a total of 3.9 million visits each year and the town’s tourism sector is worth £579.5 million to the local economy. 

The proposed development supports the council’s wider regeneration ambitions for Scarborough, and the former Brunswick Centre is seen as a key opportunity to bring new leisure, entertainment and retail uses into the town centre.

The plans would include a six-screen multiplex cinema with capacity for about 600 people as well as a family-focused indoor leisure attraction. The proposals also include up to three restaurant and food and drink units and two retail units. 

Studies commissioned by the council have concluded that the strategic case for investment is strong, with a new town centre cinema expected to help attract visitors, increase footfall, support local businesses and improve the town’s leisure sector. 

The proposed scheme has an identified gap of £10.5 million and also requires £8 million in public sector loan funding to help attract commercial investment.

The executive will be asked next week to approve in principle the proposed public sector funding package of £10.5 million in grant funding from Pride in Place and the combined authority and an £8 million loan from the council. 

Members of the executive will also be asked to delegate responsibility to the council’s interim director of resources and Section 151 officer, Anton Hodge, in consultation with the executive member for finance and resources, Cllr Peter Wilkinson, to approve the release of each tranche of funding. 

Our funding would only be provided if the York and North Yorkshire Combined Authority and the Scarborough Neighbourhood Board funding is agreed, and robust safeguards and comprehensive due diligence checks are met. 

If funding is approved by the executive next week, the next phase of work is expected to take about 12 months before a final decision is made on whether the full redevelopment should proceed. 

The report to the executive can be viewed or downloaded as a PDF here.


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The council provides services across North Yorkshire including Harrogate, Ripon, Scarborough, Whitby, Northallerton, Thirsk, Selby, Tadcaster, Malton, Pickering, Richmond, Skipton and more.

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