Five out of the 10 local authorities with the highest total individual insolvency rates in 2011 are seaside towns, with Blackpool having an individual insolvency rate of 57.7 per 10,000 adults, approximately double the England and Wales
Other seaside towns that are also having problems include Wansback, Penwith, Torbay and Scarborough . Three of these towns also have an above average percentage of companies at risk of failure.
Penwith, Torbay and Scarborough all have a higher percentage of companies at risk of failure in the next 12 months compared to the national average (21.6%). In Penwith, 24.4% of companies are at risk of failure; this figure rises to 25.2% in Wansbeck and 25.7% in Torbay . Both Blackpool (21.8%) and Scarborough (20.7%) are closer to the national figure.
Although “Staycations” are becoming more popular compared to overseas package holidays, many families can either no longer afford these or are cutting down on spending while away which is significantly impacting seaside resorts.
Lee Manning, R3 President, comments “Many of these areas are still very much reliant on the holiday trade, and are therefore under enormous pressure. Without the boost that tourism gives to local economies, many small local businesses are struggling to stay afloat and this will have an inevitable impact on the finances of those who own, supply to and are employed locally by these businesses.
“We appreciate that individuals are also feeling the pinch, with wages stagnant and the cost of living increasing, but the important thing is to seek help early. We would urge any business or individual who is struggling to make ends meet to seek advice from a regulated professional.”
