A £1.5m scheme to encourage tourism, create employment and improve public transport is gathering steam.

Hambleton District Council and Wensleydale Railway have signed a contract that will see Station House, at Bedale railway station, renovated and used by the railway company.

Planning permission has been secured for a ticket office, waiting room, information point and cafe.

Other station buildings are being converted into ten craft workshops, including a large unit suitable for a gallery and exhibition facility. Most of the units have display areas and will be compatible with the station's use for visitors and travellers.

"This is a very exciting development for Bedale - one we hope will attract visitors, as well as create employment opportunities for local people and providing better transport links," said Hambleton's cabinet member for prosperity, Ralph Andrew.

"With tenants in the new workshops and the opening of Station House it will be a great place to visit."

Ruth Annison, chairwoman of Wensleydale Railway, said: "We have enjoyed working with the district council in preparing for this improvement to rail passenger facilities at Bedale - the gateway market town to Wensleydale.

"When the structural work to Station House in complete, our volunteers will decorate the interior before the building is opened to the public.

"We look forward to working with local tourism and other businesses to make the most of the benefits the railway can bring to the town."

As well as facilities on the site, the Bedale Station development is being enhanced by a new footbridge over the beck, which will improve pedestrian routes to and from the town centre. Work is due to begin on it this summer.

Hambleton District Council has joined forces on the scheme with the regional development agency, Yorkshire Forward, and North Yorkshire County Council.