Britain’s coastal towns see highest rates of bankruptcy despite rise in staycations
BRITAIN’S coastal towns dominate a list of areas which suffered from the highest level of bankruptcies last year, a study has found. Research from accountancy group UHY Hackey Young suggests seaside towns are struggling to recover from decades of decline in shipbuilding, fishing and tourism. Scarborough ranked second out of 347 local authorities in the […]
BRITAIN’S coastal towns dominate a list of areas which suffered from the highest level of bankruptcies last year, a study has found.
Research from accountancy group UHY Hackey Young suggests seaside towns are struggling to recover from decades of decline in shipbuilding, fishing and tourism.
Scarborough ranked second out of 347 local authorities in the UK for personal insolvencies in 2018, with 47.8 insolvencies per 10,000 adults.
This compares to a UK average of just 25.
Other high insolvency coastal areas include Torbay – third worst at 45.7 insolvencies per 10,000 adults and Plymouth, fourth with 45.2.
The top ten also included Hull and Blackpool – although Stoke-on-Trent took the top spot for the highest personal insolvencies in the UK, recording 51.4 insolvencies per 10,000 adults in 2018.
Experts said that the increase in “staycations”, as the weak pound made holidays at home more attractive, has had little impact on seaside destinations like Scarborough and Blackpool.
According to the report, coastal towns outside of the South East of England have struggled to replace their traditional industries with sectors such as financial services and technology.
Most of the poorer performing seaside towns also lack universities making them less attractive destinations for businesses looking for skilled workers.
Highly educated young people are also moving to more prosperous parts of the UK, leaving behind a population of pensioners.
But the decline of Britain coastal town is nothing new.
As air travel became cheaper and more accessible in the 1960’s and 70’s, foreign holidays became popular and many UK resorts experienced a period of decline.
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Peter Kubik, Partner at UHY Hacker Young, said: “People living in seaside towns continue to fall into bankruptcy as the coastal economy fails to keep up with the rest of the country.
“Coastal towns such as Blackpool are clearly struggling to reinvent themselves and throw off their old image.
“Further investment is going to be needed to help these towns unlock their potential.”
Looking for inspiration for your next UK holiday? Last year, consumer group Which? revealed the top ten British resorts to visit in the summer.
Before you go check out these cash-savings to make your quick getaway affordable.
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