Unfinished signs along Filey Road have left people bemused about whether or not the new lane has come into operation – leaving it empty while they are stuck in a single-file queue.

Motorists have also been left in the dumps because refuse lorries block off rush hour traffic – the new and unused lane means there is no longer enough room for cars to pass the wagons which have stopped to load bins on the out-of-town side.

Drivers are then having to wait for a space in the oncoming traffic, which has caused tailbacks stretching to Ramshill.

The new lane, which runs from the University of Hull, Scarborough Campus, to the junction of Ramshill and Queen Margaret's Road, with a break near the sports centre, has been installed as part of the new park and ride system.

It will operate from 7am to 7pm every day of the week and bin lorries will not be allowed to use it while making collections on the way into town.

An Osgodby resident, who did not want to be named, said: "Every Wednesday during rush hour there is always a bin lorry blocking the traffic. The amount of traffic that builds up behind it is ridiculous.

"Cars turning right into Scarborough College are also blocking traffic flow because of the new road layout. It's crazy – the layout seems a bit misleading for people at the moment and I think there will end up being an accident."

She also feared that Holbeck Hill and West Street would become "rat runs" with more and more motorists trying to avoid Filey Road.

Retired textile worker Richard Crowther, 73, of College Avenue, thinks the situation could pose a threat to motorists.

He said: "Many of the houses on the left-hand side of Filey Road as you go out of town are multiple-occupancy and they have dozens of bins that need emptying.

"Cars are having to pull out into oncoming traffic which I think could be very dangerous.

"I don't think it's been an improvement for the area - I think it's a costly nightmare. We do want holidaymakers coming in, which means more traffic, but I can't see all of them wanting to use the park and ride."

A Muston resident, who uses Filey Road daily, has seen cars using the bus lane. He said: "I don't think some drivers knew what they were doing. Signs telling people about the bus lane are partly whitewashed out, which seems to have caused some confusion."

John Riby, Scarborough Council's head of technical services, said: "There are certain things like bin collections that have a right to a stop temporarily and people will have to wait while that happens.

"At the moment people can still drive in the bus lane, but we would advise them not to as it goes back into one lane at the traffic lights and may cause problems.

"The lane will come into operation when the contractors have finished putting up the signs, which is still ongoing at the moment."