PLANNED developments on the North Yorkshire coast could create as many as 2,500 jobs.

Ray Williamson, Scarborough's economic development officer, said the jobs could be created at the town's business park during the next decade.

He told Scarborough Borough Council's cabinet that development of the park, at Eastfield, was a key project under the integrated development plan, which has attracted European funding.

But he said spending targets were not being hit and the area risked losing some or all of its remaining allocation for this financial year.

Scarborough had an allocation of £2.8m for the 2000-2003 period, of which £789,000 has been committed, while £443,000 of Whitby's figure of £1.75m has been spent.

Mr Williamson said feasibility work on the business park was under way and the council was working with regional development agency Yorkshire Forward and the Government Office for the region on how to develop the scheme.

He said several projects had been given financial support, and a gateway scheme for Staithes, workshops at Wykeham and initiatives in the North York Moors National Park to promote tourism were also planned.