CONSULTANTS reviewing Scarborough's leisure business say that the borough council must provide a subsidy if it wants changes.

ABL Cultural Consulting was brought in by Scarborough Borough Council to review the town's cinemas and theatres.

ABL's report says the town needs a 1,500-seat theatre, multiplex cinema and a venue for concerts.

Two options are suggested in the report. The first includes retaining the 2,000-seat Futurist theatre on the seafront and spending £20m on developing it. An extra £5m would be spent on The Spa.

The council would have to find an annual subsidy of £526,000 for the operating costs of The Futurist and The Spa, say the consultants.

The second option envisages demolishing the Futurist and replacing it with a multiplex cinema, bowling or fitness centre, restaurants, hotel, and homes, with an upgrading of The Spa.

The proposals were outlined on Friday.

Steve Hollingworth, head of leisure services for the council, said the options will be explored further.