A GRANT of almost £2m is leading to the creation of a "digital hub’"to encourage new businesses to Northallerton.

The hub, to be run by Hull-based Centre for Digital Innovation, will be created within Treadmills – the new development on the former Northallerton Prison site.

The Local Enterprise Partnership (LEP) have awarded the scheme £1.78m to help refurbish the prison’s former female wing in which the centre will be housed.

The hub will be fitted out with ultrafast broadband technology with the aim that Treadmills becomes the location of choice for local digital businesses.

Hambleton Council’s deputy leader, Councillor Peter Wilkinson, said: “This funding means the hub has the green light and we can begin work on plans to bring in businesses.

“This is not just a very exciting development for Northallerton but for the whole of Hambleton district.”

Cllr Wilkinson said the hub will encourage the start-up of new local digital businesses and give young people the opportunity of employment in this sector locally.

David Kerfoot, chair of the York, North Yorkshire and East Riding LEP, added: “Digital will be crucial to the long-term success of our economy.

“We have recently seen success in NYnet securing ultrafast broadband for our town centres and this investment will attract technology businesses who can take advantage of this improved technology.

“With city centre connectivity speeds, North Yorkshire is fast becoming a place where world class quality of life supports innovative businesses who compete globally.”