A £2.7M scheme to create a business community is moving progress after overcoming problems securing funding.

The county council's Property Grants Scheme aims to boost business development by helping to create quality workspace for new businesses and established companies.

Independent consultant Knight Frank has looked at the potential business sites in 15 towns, including Hawes, Leyburn, Reeth, Richmond, Masham, Helmsley, Pickering, Staithes, Whitby and Scarborough.

The company has come up with a shortlist of suitable sites. Property developers, local authorities and businesses can apply for funding for feasibility studies to be carried out and later for grants to pay for any building work needed.

Four sites are ready to be marketed and to be the subject of feasibility studies.

They are Waddingtons Building, in Brompton On Swale, Sawmill Lane, in Helmsley, the former National Parks Office, in Clapham, and Falsgrave Community Centre, in Scarborough.

The council's director of business and community services, Gordon Gresty, said: "It is all about providing capital grants to businesses to provide or extend workshop facilities specifically for the establishment of businesses in certain parts of the county.

"The problem with the scheme has been getting the funding tied together."

But he said the scheme was now moving forward.

"We are doing feasibility studies on the sites now. Hopefully, when that is done, we might be able to get some of these sites actually taking advantage of the funding available."

A panel has been set up to assess funding applications and a programme monitoring officer employed to work on implementing the scheme.

The total cost of the project has been put at more than £2.7m, which will be met through a combination of private sector funding and grants from regional development agency Yorkshire Forward and the Government Office for Yorkshire and Humber.

"We are hoping that, with the private sector contribution, we will be able to provide something like £2.7m-worth of investment across the county," said Mr Gresty.

A report on the Property Grants Scheme will be presented to county councillors on the economic development and regeneration overview and scrutiny committee on Friday.