Mr Duncan, the Conservative mayoral candidate, has pledged to buy and refurbish Scarborough’s Grand Hotel.
Labour said, according to the party’s own analysis, the refurbishment alone would cost just under £7 million, meaning it would blow a third of the mayor’s budget in the first elected year.
But Mr Duncan, who is also North Yorkshire Council’s transport boss, said taking over the Victorian hotel would act as “the essential catalyst for the town’s wider regeneration, sparking civic pride, fresh confidence and investment”.
Labour said its analysis reveals that Mr Duncan’s six pledges, including using mayoral funds to offer up to two hours free parking in every town and city in North Yorkshire, would cost up to £860 million.
The figure is more than the £540 million devolution settlement intended to last the mayoral authority 30 years.
Labour added that its analysis of the annual accounts of current and former town and city councils across North Yorkshire and York found that Mr Duncan’s two hours free car parking pledge would require £19 million from local authority income across the mayoral boundary.
A Labour spokesperson said: “Clearly Duncan subscribes to the Liz Truss school of thought when it comes to economic commitments.
“This eye-watering spending spree, drawn up on the back of a fag packet, will leave a black hole in the mayoral budget and potentially bankrupt the new mayoral authority.”
David Skaith, the Labour and Co-operative candidate for York and North Yorkshire mayor, added: “Duncan is set to blow a huge chunk of the first year mayoral budget on a policy that doesn’t reflect the needs of the region, especially when our public services are crumbling.”
Keane Duncan announces plans for ‘Mayoral Development Corporation’ in Scarborough
Mr Duncan has since announced that he plans to create a new ‘Mayoral Development Corporation’ in Scarborough if elected.
He said the corporation would deliver “significant private sector investment to revitalise the Grand, and the wider town, by identifying commercial partners” who support his “positive vision”.
Under the plans, he said a local board would take control of planning and “key council-owned buildings” in the town.
The Tory candidate added that new mayoral powers, including compulsory purchase, would let him “secure control” of the Grand from current owner Britannia, which he previously described as “the UK’s worst-rated chain”.
He said the Grand, which has an average rating of 2.5/5 stars out of 10,000 reviews on Tripadvisor, “drags down the town’s reputation”.
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“A Mayoral Development Corporation would have the legal power to wrestle this landmark from Britannia,” he said. “And by partnering with the private sector, we would be able to raise the finance required too, meaning no big bill for taxpayers.”
He added that taking over the Grand “would act as the essential catalyst for the town’s wider regeneration, sparking civic pride, fresh confidence and investment”.
“I believe this symbol of Scarborough’s illustrious past can become a beacon of its radiant future.”
Felicity Cunliffe-Lister, the Liberal Democrat mayoral candidate, previously criticised Mr Duncan’s pledge to buy the Grand.
“As a hotelier myself I can’t see any sense in this,” she told the Local Democracy Reporting Service. “Keane Duncan has just blown his annual budget in free car parking, and now he’s going to run a hotel?”
She added that Scarborough “needs investment, but this isn’t the way to generate growth and create high-skilled jobs”.
Keith Tordoff, independent mayoral candidate, previously described the Grand Hotel pledge as “typical Conservative promises before an election which will never be delivered in real terms”.
“The mayor should work with the owners to make sure that it actually raises the standards so that it attracts tourism for Scarborough, which the town needs,” he told the Local Democracy Reporting Service.
Voters head to the polls on Thursday (May 2) to elect the first mayor of York and North Yorkshire.
The candidates are, in alphabetical order: Felicity Cunliffe-Lister, Liberal Democrat; Keane Duncan, Conservative; Kevin Foster, Green; Paul Haslam, independent; David Skaith, Labour; Keith Tordoff, independent.
