THE Yorkshire coast's economy needs to diversify to create jobs other than in tourism, says a new blueprint on the future of the area.

The Yorkshire and Humber Assembly, which is producing a draft regional strategy, is to be told that Scarborough needs more housing, employment development, coastal regeneration, and improved transport links.

The assembly said: "A narrowing employment base and an increasing dependence on low wage-low skill sectors, has resulted in significant losses of younger age groups.

"Consequently, business start-ups are low. On the other hands, in-migration has been characterised by older lower income groups who make increasing demands on the area's health and social care capacity."

Development should be restricted in and around Whitby to safeguard its historic character, adds the report.

Scarborough Borough Council's head of planning, Gordon Somerville, said that about 430 new homes are planned each year between now and 2016, increasing to 516 between 2016 and 2021.

He added that about 65 per cent of the homes should be built on brownfield sites, and 40 per cent of new developments of 15 or more homes should be earmarked for affordable housing.

Mr Somerville says the plan's overall aim is to reverse the long-term trend of population and investment dispersal away from the large towns and to support market towns as service centres to meet the needs in rural areas.