A PIONEERING £2 million scheme has been launched to provide high-quality workspace for new businesses in North Yorkshire.

Firms are being given the chance to grow and develop through a new grant scheme, which will be operated by North Yorkshire County Council's economic development unit.

The money can be spent helping the development of clusters of new and young businesses and encouraging small-scale inward investment. It can also be used by existing companies to develop workspace units.

Funding for the North Yorkshire Property Grants Scheme comes from the European Regional Development Fund and regional development agency Yorkshire Forward. It should lead to businesses and organisations applying for funds for the development of quality business space.

The county council hopes it will lead to more businesses moving on to the industrial estates in and around North Yorkshire's market towns.

It is also aimed at stimulating private sector inward investment, contributing towards new jobs and new business start-ups and helping to safeguard the future of existing jobs and businesses.

Prospective applicants to the scheme should be based in the Objective 2 area of North Yorkshire, including Helmsley, Pickering, Filey, Scarborough, Bedale, Whitby and Hawes.

The county council is working in partnership with property consultants Knight Frank and architects and civil engineers Ferguson McIlveen to deliver the scheme across North Yorkshire.

Jo Orrell, of Knight Frank, said: "It has been our job to identify and analyse suitable development opportunities in and around North Yorkshire's market towns. This will enable the scheme to attract private sector inward investment, contribute to the development of new jobs and new business start-ups and help to safeguard the future of existing jobs and businesses."

Gordon Gresty, corporate director of business and community services at North Yorkshire County Council, said: "This is just the type of scheme we need in North Yorkshire to help stimulate business development and the creation of new jobs."

Updated: 11:13 Tuesday, May 17, 2005