Economies of the UK Islands

Debate between Alan Mak and Bob Seely

Wednesday 9th May 2018 Westminster Hall

[Alan Mak (Havant) (Con)]

I beg to move,

That this House has considered the economies of the UK islands.

It is a pleasure to serve under your chairmanship, Mr Rosindell. I thank the Speaker’s Office for granting this debate, the Minister for coming to respond and all right hon. and hon. Members for joining me. In particular, I thank my hon. Friend the Member for Isle of Wight (Mr Seely) for the important role he has played in instigating and securing this debate, and in launching the all-party parliamentary group for UK islands, of which I am proud to be a founding member.

Island geography has played a pivotal role in shaping Britain’s history, and has contributed to the culture, society, institutions and economy that we enjoy today. Similarly, the smaller islands that are part of the UK also have their unique history, communities and economic structures, stemming from their own geography. Nearly every aspect of life on these islands, including their economies, is impacted on in some way by their geography. The debate is about showcasing and celebrating the economic strengths of our islands, highlighting the challenges they face and exploring how central and local government can help our islands get fit for the future. We are all islanders in one form or another and we should work together to protect and enhance these extraordinary communities and their economies.

Within my constituency, Havant, I have the honour of representing more than 17,000 residents on Hayling Island, one of Britain’s most successful inhabited islands. The island has a fascinating history dating back to the iron age, stretching through the 11th century, the salt production industry and serving as a location for a mock invasion in preparation for the D-day landings. As important as Hayling’s remarkable past are the exciting possibilities for its economic future. Northney, West Town, Eastoke, Sea Front and Mengham all boast an array of strong, independent businesses. Some of these are small, such as the Hayling Island Bookshop, reputed to be the smallest independent bookshop in Britain. It was a finalist in the parliamentary best small shops awards. There are others, such as Bentley Walker, which started life as an electrical goods shop and has now diversified into a provider of satellite-based internet technologies, serving customers around the world. Others, such as Northney Ice Cream, the Coastguard Café and the Seaside Florist, are family-owned. All of these Hayling businesses and others have their own character. While owners and employers are always eager to help the local community, they also give the island its distinctive welcoming character and a strong sense of community, engendering a strong sense of loyalty among local residents.

That warmth has made Hayling a great place to visit and helped it to build a strong visitor economy. The tourism industry is worth more than £160 million to the Havant and Hayling area each year. Hayling’s beaches are award-winning; the three main beaches of the island have won both the European blue flag and the Keep Britain Tidy group’s seaside award flag for cleanliness and management. Eastoke Corner beach has been awarded a blue flag for more than two decades, attracting visitors from each of the three busy holiday parks across the island, which are also key employers.

Beyond the beaches, the island’s sailing clubs also bring in visitors who enjoy our natural environment. The annual Virgin kitesurfing festival also attracts thousands of water sports enthusiasts from around the world. The island’s remarkably low crime rate makes it a safe place for business to start and grow. The coastal and semi-rural nature of the island lends itself to the establishment of new businesses set up by local entrepreneurs such as John Geden, who established Sinah Common Honey. Each jar of honey is said to derive from nectar from more than 1 million flowers. Hayling’s rich rural environment provides a sustainable, natural dimension to Hayling’s economy. As of March 2018, only 115 of Hayling’s 17,573 residents were claiming unemployment benefits of any kind—just 1.2% of the population, compared with the English average of 2.1%.

Although Hayling’s unique geography is a source of economic strength and community spirit, the island and others around the UK also face unique challenges. There is a consistent need on Hayling Island and other islands across the UK to work harder to create sustainable and attractive employment opportunities for our residents, especially younger residents and school leavers. Any dip in opportunities for younger generations carries with it potentially destabilising knock-on effects for our wider economy. A brain drain, even a temporary one, can mean that our local businesses struggle to hire workers. The 2011 census indicated that there were 4,060 people living on Hayling Island who worked elsewhere, out of a working population of 9,934. Just under half our working residents commute off the island via a single road bridge most days of the week.

It is absolutely crucial that we equip all our islanders, especially our young people, with the skills to succeed in the economy of today and that of the future. I therefore welcome the fact that four of Hayling’s schools, Mill Rythe Infant School, Mengham Infant and Junior Schools and Hayling College are rated as good by Ofsted, with Mill Rythe Junior School rated as outstanding. As with many coastal communities, however, we still have pockets of deprivation and underachievement that hold back our economic potential and productivity.

Although schools across the whole Havant constituency, including Hayling Island, receive higher than the national average in per-pupil funding, I believe that the Government’s new national funding formula can do more to help pupils who suffer from the most extreme forms of deprivation, particularly in coastal communities. I have met the Minister for School Standards and the new Secretary of State for Education on several occasions to lobby them on this issue. I hope the Exchequer Secretary shares my desire to ensure that every young islander gets the best start in life, so that they can contribute effectively to our economy in the future.

The other challenge our island economy faces is the over-exposure of our business community to changes in the island’s service infrastructure. We live in an age of digitisation, as I have emphasised in my other work in this House on the economic opportunities of the fourth industrial revolution. As online banking increases, footfall in local banks will inevitably fall. This has led to the closure of Mengham’s NatWest and Barclays branches on Hayling, and I am sure other hon. Members face similar situations in their constituencies.

Although residents on the mainland can mitigate the closures by driving to a nearby branch that remains open, Hayling only had one branch of each main bank. In recent years, closures have forced many residents to travel to the mainland using the single road with increasing regularity. I am aware that this has been touched on and tackled elsewhere through the access to banking protocol, the Griggs review and the access to banking standard, and is ultimately a commercial decision beyond the Government’s control, but I want to raise it to emphasise the heightened sensitivity of the economies of the UK’s islands to changes in the economic infrastructure—they impact on us severely.

Public transport is key to a vibrant economy within an island as large as Hayling—transport between the island and the mainland, and in neighbouring areas, such as Portsmouth. Any diminution in service has a disproportionate impact on island communities for residents and visitors alike, especially on islands such as Hayling, which are both coastal and semi-rural. The Hayling ferry, for example, is a valued community resource that also helps the island economically. The ferry’s owners and operators are putting together a business plan to make it commercially viable in the long term, working with local councillors—something I support. I hope that my hon. Friend the Minister will join me in wishing them every success as they seek to secure a long-term solution to ensure that we have a positive local impact from the ferry. Road infrastructure is equally vital. High-quality road networks are important, particularly as new housing is proposed on Hayling Island to meet local demands. Digital, structural and economic services are vital to the economic wellbeing of our island.

We live in a world of unparalleled opportunity thanks to technological innovation and a host of businesses are now footloose thanks to the advent of the internet and online shopping. On Hayling Island, 96.9% of premises can receive superfast broadband, set against a UK average of 93.5%. We are fortunate to be close to the mainland with a strong digital infrastructure, but I know that many islands are not so fortunate. With services such as banking increasingly moving online, fast download speeds are essential. That should be an area in which the Government can support island communities.

I commend the Government’s efforts to date to support island communities. In 2011, the Government established the coastal communities fund and since then, four funding rounds have been completed, awarding a combined total of £173 million. Only 9% of that funding, however, has been awarded to projects based on islands, and 70% of that has been allocated to islands in Scotland. I do not begrudge any of the funds that have gone to those recipients. Instead, I seek to highlight our collective and continued need for sustained development and support for the UK’s islands, including Hayling Island.

In March 2015, the then Department for Communities and Local Government established coastal community teams in order to encourage,

“sustainable economic development and regeneration in coastal towns.”

Each of the 146 coastal community teams that have been established were awarded £10,000, yet only three were exclusively based on islands. I am delighted that one, the South Hayling Island coastal community team, was based on Hayling Island.

Although the coastal communities fund was established with the aim of providing funding to create sustainable economic growth and jobs, it has become largely project-focused rather than addressing the structural, systemic and strategic challenges faced by UK islands. Consequently, I hope the Minister and the Government will consider expanding or complementing the coastal communities fund so that it can provide stronger strategic and structural support to the economies of UK islands. The reformed fund would be exclusively available to island communities, such as Hayling Island, to apply for.

[Mr Bob Seely (Isle of Wight) (Con)]

I thank my hon. Friend for securing the debate. I strongly support the proposal, and I am glad that he is raising it with the Minister, because one of the problems is that islands are sometimes too small for the Treasury to be interested in as economic enterprise zones, which we need on the Isle of Wight and in the Medina valley specifically. With an enlarged coastal communities fund, perhaps one that looked specifically at driving economic regeneration, relatively small sums of money could make a great deal of difference and would go down very well.

[Alan Mak]

I thank my hon. Friend for that sound intervention and again for his role in securing the debate. I entirely agree with his points. As I was saying, a reformed coastal communities fund would be incredibly important to coastal communities such as Hayling Island and his constituency. It would be exclusively available to island communities to apply for to help them to meet the specific and unique challenges they face as a result of their specific and unique geography. As I mentioned in my opening remarks, those challenges include an oversensitivity to changes in local infrastructure, expensive or sometimes congested transport connections to the mainland, a skills gap and a need to support local, independent businesses, all of which could hamper economic growth if not addressed.

In conclusion, we are all islanders. Britain and its satellite islands are a beacon to the world of how innovative, welcoming and economically successful islands can be. After all, the UK is one of the largest and most successful island economies in the world. However, to make our island economies sustainable and resilient, on Hayling Island and beyond, we must help to tackle the systemic and structural challenges they face. I hope that central and local government will play their part. By doing this, we can ensure that islanders across the UK enjoy the bright economic future they deserve, and that they not only are fit for the future, but get to the future first.