A multi-million-pound scheme to upgrade the Harrogate Convention Centre and strengthen its position as one of the UK's leading conference venues has reached a significant milestone.

The plans focus on transforming Studio Two to create large breakout conference rooms, enabling the venue to compete more effectively for national events and deliver wider economic benefits for the region.

The reworked Studio Two would provide breakout facilities for about 1,200 delegates and is projected to generate an additional £1.7 million a year.

Councillors are set to receive an update on the project, following completion of procurement, when members of the executive meet on Tuesday next week (17 March).

Subject to approval, the council will award the construction contract, with building work potentially starting as early as this summer.

The scheme is expected to cost around £9.4 million after final design refinements. The investment is forecast to be repaid within a decade through the extra income an enhanced venue can deliver.

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Council deputy leader, Cllr Gareth Dadd, whose responsibilities include property, said: "The Harrogate Convention Centre brings thousands of visitors to North Yorkshire every year and contributes more than £45 million for our economy through the retail and hospitality sectors.

"It is a key economic driver which promotes both the town and North Yorkshire on a national stage. It is vital that it continues to play a leading role in the economic success of Harrogate and the wider region.

"Developing Studio Two by creating larger breakout conference rooms to complement the existing 2,000-seater auditorium can ensure the venue stands alongside the very best centres of its kind in the country, competing in what is an extremely competitive market.

"It can only strengthen the centre’s economic impact in the years ahead, while at the same time, allow us to reduce our subsidy and protect taxpayers' money."

Built in 1982, the centre — the only facility of its kind in North Yorkshire — sits in the heart of Harrogate. It features one of the UK's largest purpose-built auditoriums and offers 13,000 square metres of exhibition space.

However, the absence of sizeable breakout rooms has limited its ability to host larger conferences that could bring substantial benefits to Harrogate and the wider area.

Projections indicate that without this investment the council would need to provide an annual subsidy of around £1.1 million to keep the venue operational.

Following local government reorganisation in 2023, consultancy firm 31Ten, which has extensive experience of the conference market, undertook a marketing exercise to identify future opportunities for the centre.

In December 2024, the executive approved tendering for the most cost-effective option to redevelop Studio Two.

The venue will also continue to host exhibitions, corporate events and live entertainment that provide a significant boost to the local economy.