BUSINESS leaders in two North Yorkshire towns have been urged to back a cash bid to boost their economies.

Paul Beanland of the Towns' Initiative, said that, unless firms supported the Business Improvement District (Bid) initiative, they could face "bleak years" ahead.

Businesses in Malton and Norton signing up to the venture will see £85,000 returned to the towns for each of the next five years to fund campaigns and events, with businesses having a precept added to their business rate to provide the funds.

"These and other schemes will generate more business and boost the local economy," said Mr Beanland.

Yorkshire Forward, the regional development agency, is making reimbursements to a maximum of £30,000 in six months, to enable the Bid vote to take place among businesses.

Town centre manager Peter Mudge said Malton and Norton had the chance to become the first small towns in Britain to be designated a Bid under a new Government scheme.

He said a precept on businesses would be 1.5 per cent of the business rate with a maximum payment of £750.

But half of the estimated 400 businesses in the towns needed to support the scheme for it to succeed.