Coastal areas dominate the UK's bankruptcy blackspot list

Seaside towns and cities have topped the list of UK bankruptcy blackspots.

You’re more likely to be declared bankrupt if you live in a seaside town, a new report has shown.

The highest bankruptcy numbers are all found in coastal towns with Torbay in Devon taking the top spot with 54 cases per 10,000 adults in 2012.

Hull, the City of Culture for 2017, is at number five. In total 21 of the top 50 areas are found by the sea.

Coastal town bankruptcies

Rhyl & Prestatyn in North Wales is in second spot with 53 cases per 10,000 adults followed by Scarborough in North Yorkshire with 48, Blackpool in Lancashire with 48 and Hull in East Yorkshire with 44.

This is compared to a national average of 25 for last year, according to the results from accountants Wilkins Kennedy.

The numbers for 2013 are expected to be higher, especially as these results don’t take into account the recent news from BAE Systems of an end to shipbuilding in Portsmouth which will lead to 940 job losses.

One factor is that the majority of residents of seaside towns tend to be older people or those who have retired. They are more susceptible to issues such as rising energy bills and high inflation and often unable to relocate to wealthier inland areas.

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Failing tourist industry

Tourism is one of the main reasons blamed for the rise, as an increasing number of Brits choose to travel abroad for their holidays rather than visit coastal areas in the UK.

Along with a decrease in tourism, the number of job vacancies available along the coast have fallen as fishing quotas are cut, leading to a slowdown in the UK’s maritime industry.

But this is not the case for all coastal resorts, as more affluent areas such as Brighton and Bournemouth have been less affected by the downturn.

Lack of employment

The Government’s Coastal Communities Fund, which will provide £29 million towards coastal areas next year, is unlikely to have much of an impact according to Anthony Cork, partner at Wilkins Kennedy.

It was set up in 2012 to help those living along the coast and is designed to set up training projects for local people, which should in turn create more jobs. But Cork says this doesn’t go far enough.

“Students and graduates with high levels of debt will find it hard to return to their home towns if they can’t find a decent job, but unless young talent can be persuaded to stay, it’s difficult for businesses to invest, creating a vicious cycle,” he adds

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