A £10m package is needed to revive a North Yorkshire town's economy in the wake of major losses, according to the borough council.

Scarborough Borough Council's cabinet is to urge Employment Minister Alan Johnson to back an action plan which has been drawn up.

Chief executive John Trebble said the plan included development of 52 hectares at the town's business park, at Eastfield, encouraging e-commerce enterprises and boosting the conference and holiday industries.

Regional development agency Yorkshire Forward has picked Scarborough as a pilot Urban Renaissance Town in the region.

The council has commissioned Ecotec Research and Consulting to carry out an economic impact assessment and it is recommending that a Yorkshire Coast Investment Bureau be set up, together with a Scarborough Business Investment Programme.

An upgrade of the A64 Leeds to Scarborough road is seen as a key to improving the coast's economy, together with a review of Assisted Area Status by the Government.

Mr Trebble said that the full impact of the downsizing by the Plaxton coach-making company was yet to be felt in terms of unemployment and loss of income to the economy.

He said the new European Union Objective 2 regional funding and Yorkshire Forward aid would be vital in helping to revive the economy and job prospects.

Mr Johnson is to visit the town on a fact-finding tour later this month.