A GROUP is to be set up in Whitby to improve the town.

The historic port is one of 12 small towns in North Yorkshire to benefit from the Government's Market Towns Initiative.

Ray Williamson, head of regeneration at Scarborough Borough Council, says about £700,000 has been allocated for each town and regional development agency Yorkshire Forward is looking for eligible projects with "a strong socio-economic" impact.

Potential schemes at Whitby include improvements to the harbour, Abbey and Headland, a feasibility study on the town's business park, setting up a credit union, and a neighbourhood centre.