A NORTH Yorkshire community is to play a key role in deciding how a cash injection of £400,000 will be spent over the next four years.

Residents of Whitby are to be involved in drawing up an action plan alongside officers from Scarborough Borough Council and local business leaders to find out areas most in need of extra funding.

The town has been chosen to receive the money through the Government's Market Town Initiative, which is designed to help economic regeneration in places such as Whitby.

It is hoped that the move could be the key to more money being invested in the town, such as match funding from Europe.

Councillor Michael Pitts, portfolio holder for economic development and harbours at Scarborough council, said the money would not be spent on projects without the backing of the people of Whitby through a consultation exercise and action plan.

He said: "That action plan must address the needs of Whitby and the surrounding area and identify projects which the bodies administrating the initiative, Yorkshire Forward and the Countryside Agency, can consider for funding.

"Once that is done, and the bodies have agreed the projects, work can begin on bringing some real benefit to the Whitby area."

The council put the case for Whitby earlier this year when it was announced that six towns would receive cash help in the Yorkshire and Humber area as part of the second round of the Market Towns Initiative allocations.

The council's chief executive, John Trebble, said the fact that the money would be pumped into disadvantaged areas and projects that would encourage economic growth.

He said: "This announcement is very welcome news for Whitby, which has not had the European funding other towns have benefited from in the past.

"It will now be up to ourselves, working closely with the community, to make sure the money is spent on projects which will help bring future economic prosperity to Whitby.