SQ1, our transformation of the former Brunswick Centre on Westborough, is moving forward with revised plans after an £18.5m public funding package was agreed.
All three public partners have now agreed their contributions in principle. The York and North Yorkshire Combined Authority gave its approval on 6 November, following North Yorkshire Council’s executive on 27 October and the Scarborough Neighbourhood Board on 23 October. The package combines £7m of grant funding from the Combined Authority, £3.5m from Pride in Place and an £8m loan from North Yorkshire Council.
We’ll meet around half of the scheme’s projected £35m total development cost. That includes the substantial sums we’ve already invested in buying the Brunswick, holding costs and design and planning work, with the rest of our share to be raised through commercial finance.
An initial £3m, shared equally between the three partners, will fund detailed design, strip out works and a new planning application to replace the consent granted in 2023. Construction funding will only be released once planning permission, tenant commitments and our commercial finance are in place.
The emerging plans bring major retail, a six-screen cinema, restaurants and family leisure together under one roof. Large retail units are proposed along Westborough, including space for a major national retailer, with the cinema, a family leisure attraction and up to three restaurants accessed from Somerset Terrace. The car park will also be refurbished and expanded.
North Yorkshire Council estimates that, once open, SQ1 could support more than 400 jobs, with around 160 more in the supply chain and over 100 during construction. It’s forecast to attract around 850,000 visits and generate up to £45m of spending in the town each year.
David Wells, Development Director at Scarborough Group International, said:
“This is a real vote of confidence in what SQ1 can do for Scarborough, and we’re delighted to have North Yorkshire Council, the Combined Authority and Pride in Place all behind it.
“A scheme like this has to work for everyone. It needs the right occupiers, the right finance and a sound commercial footing, which benefits the public purse too, as the public sector shares in any profits above agreed levels. As the market has shifted, we’ve reworked the plans to make sure SQ1 delivers on all of that, and we’re now in discussions with a major national retailer and a cinema operator.”
SQ1 sits five minutes’ walk from the railway station, on the main route to South Bay, within the newly launched Scarborough Mayoral Development Zone. As the main economic hub for the North Yorkshire coast, Scarborough draws visitors from far beyond the town, and SQ1 is designed to serve that wider catchment.
Converting a 1990s shopping centre is a substantial engineering challenge. Floor slabs will need to be cut through to give the cinema the height it needs, smaller shops combined into the larger units modern operators require, and new mechanical and electrical systems installed throughout. Keeping and adapting the existing building avoids years of extra disruption to the town centre and significantly reduces the scheme’s carbon footprint.
Design work is already under way, with strip out works due to start in early 2027. Subject to planning permission, occupier agreements and funding milestones, SQ1 is targeted to open in 2029.
David Skaith, Mayor of York and North Yorkshire, said:
“Transforming the Brunswick Centre into SQ1 will bring major retail, leisure, and a cinema back to the town centre, creating hundreds of new jobs and opportunities.
“Scarborough deserves some love and investment, which is exactly what the Mayoral Development Zone will do.
“Working alongside Scarborough Group International and our partners we can make our investment go further and bring back pride to the heart of this iconic town.”
Cllr Mark Crane, North Yorkshire Council’s deputy leader and executive member for open to business, whose responsibilities include regeneration, economic development and the visitor economy, said:
“This is a significant milestone for the SQ1 development and a strong vote of confidence in the future of Scarborough town centre.
“The site of the former Brunswick Centre is in the heart of Scarborough and is an important element for our plans for regeneration across the town.
“Importantly, this investment has the potential to support wider regeneration ambitions for Scarborough and the coastal areas, encouraging further investment, boosting footfall and strengthening the town centre economy for the benefit of local communities and businesses.
“It is about investing in the future of a town centre that can thrive and be enjoyed by future generations.”
David Wells added:
“Scarborough gave our company its name, and we’re determined to give the town a destination it can be proud of. At the moment the nearest major cinema is an hour away in York. SQ1 will bring one to the heart of Scarborough, alongside shopping, dining and family leisure, giving people a reason to come into town throughout the day and into the evening, and that benefits businesses well beyond the Brunswick itself.”
The first phase, worth up to £3m, is funded equally by the three partners, with the Council’s £1m share drawn from its £8m loan. Construction phase funding is subject to a full business case and further approval, and will only be released once planning permission, a fixed price build contract, tenant commitments and commercial finance are all in place.
The Council’s loan is interest free for three years after completion, then charged at a commercial rate until it’s repaid from the sale of the completed scheme. For the construction phase it’s backed by a security package and a guarantee from us. Public contributions are capped, any construction cost overruns are ours to bear, and profits above agreed levels will be shared with the public sector partners.
