Residents' permit parking and on-street parking charges for visitors will have to be introduced alongside it.

A long consultation process is set to begin in November with various organisations consulted by the council and public exhibition planned for spring 2010 – around the time when it was initially due to be opening.

To see previous stories on the Whitby Park and Ride plan, including an early artist's impression, click on this link
Once all the information has been considered the council will then apply for Traffic Regulation Orders for the town's streets which will be enforced by Scarborough Borough Council.

Although the ins and outs of residents parking have not been set in stone it is likely locals will have to apply for a permit.

And it's also likely scratchcards will be introduced for visitors with accommodation providers responsible for giving them to customers – which hoteliers are concerned about.

Phil Broomhead, North Yorkshire County Council's special projects manager who is overseeing the park and ride, said: "What we are looking to do is engage with the people of Whitby as much as we can and get to know what they want and need and to accommodate this within the scheme.

"In the past it's been estimated as a £1.6m scheme but at the moment that's a really old estimate. We need to update it."

He said it was hoped pavements will be incorporated into the scheme for people to walk to Victoria Farm Garden Centre and Cross Butts Farm but there are no plans for this to continue into Whitby.

Tony Charlton, chairman of Whitby Hospitality Association fears B&Bs could lose customers as there are no reserved spaces for visitors or tourists and they could lose trade.

"It's a nightmare. Unless they put designated residents' bays in a lot of people will come back from work and won't be able to find anywhere to park. People won't be happy," he said.

"This isn't the solution but I don't know what the solution is. We have started to work together with Whitby and District Tourism Association to supply a united front."

At a town council meeting on Tuesday town councillors hit out at the cost of the scheme when Coun Niall Carson claimed £1m of the figure was being spent on a roundabout and that the consultation process so far has been poor.

Councillors voted to write a letter to North Yorkshire County Council asking for more provision for pedestrians, cyclists and horse riders.

Mr Broomhead he was "confused" as to where the figure of £1m came from as costs have not been finalised. He said an island will be included for pedestrians to cross the road and he would not rule out more pedestrian facilities in isolation as another scheme.