Coastal Towns

Anne Main Excerpts

Tuesday 6th January 2015 Westminster Hall

[Mrs Anne Main (in the Chair)]

I call John Pugh to speak on economic growth in coastal towns. After he has finished his speech, I will consider a limit of about four minutes per speaker. Ten Members have indicated that they wish to speak and, with interventions, that will probably eat up the time.

[John Pugh (Southport) (LD)]

It is a pleasure to serve under your chairmanship, Mrs Main. I welcome the Under-Secretary of State for Communities and Local Government, the hon. Member for Portsmouth North (Penny Mordaunt) to this early opportunity to speak on her brief. She has made a most impressive start to her ministerial career, and I look forward to hearing what she has to say on the topic.

I have a long-standing interest in seaside resorts. Obviously, I represent Southport, which describes itself as a classic resort, but even before coming to the House I was involved, as a council leader, in the regeneration of the town. Developing by the sea is never an easy business. It is often controversial, because people have fixed ideas about what should happen, and it is often difficult. In my time, I have certainly experienced difficulties with developers, normally when they have gone bust halfway through schemes.

However, I am glad to say that for Southport, in the public realm, the process has been largely successful. We have had the benefit of objective 1 funding and Northwest Development Agency investment, and we had useful help from the Heritage Lottery Fund at various points. The pier was refurbished, the sea wall built and other developments made. We also had the advantage of an excellent chief executive at the time who provided good leadership.

When I came to this House, I naturally pressed for a spotlight to be put on the distinct problems of seaside resorts; now I do so on the Select Committee on Communities and Local Government. In the first instance, other Committee members resisted, thinking that the issue was not a high priority, but after a close vote on the forthcoming timetable I was supported by the then MP for Easington, John Cummings. Easington is not an obvious holiday destination—I think they dig more coal there than they do sand castles—but he supported my efforts. We had to call our report not “Seaside Towns”, which I would have preferred, but “Coastal Towns”.

We published that report during the last Parliament, and it was one of the most successful pieces of work done by that Select Committee. It was spoken about outside the House as well as inside. We had some difficulty persuading the Government of the time to take it seriously, but eventually they did, and they came up with the Sea Change fund to address specifically the issues of coastal towns.

The report started from the fair assumption that Britain has a lot of coast, and that it is economically important, but that many places have changed, and some have declined as leisure patterns have changed. We wanted to understand how individual resorts had responded. Our research at the time tended in many respects to work against the media stereotype of closed bed and breakfasts, hotels turned into benefit hostels, crumbling piers, high unemployment and the like. We found enormous variation in how coastal towns responded to their problems and challenges. Some clearly prospered; some declined; some were finding their way; some were marooned in time; some were happy to be marooned in time.

The key decider between successful and less successful resorts tended to be that those that were successful had a credible vision of their future and local leadership to deliver that vision. Those that were less successful kept with their problems. I was struck, for example, by the contrast between Margate, which at the time had different views about which way it should go, and Whitstable, which clearly wanted to make itself a gastronomic centre of Kent and was doing so successfully, offering a limited line but offering it very well.

None the less, there were some constant themes in most of our research. One was a lack of opportunity for young people; the exit of young people from tourist resorts is a common phenomenon. Another was poor connectivity: most resorts, necessarily, are at the end of a line or a road. There was an underfunding problem, and well-trained people were lacking in the leisure industry, which has often been a poor trainer. Changing expectations in the hotel and leisure industry did not help either. Also, wherever one went, many people wanted to retire to the coast, resulting in higher social services costs.

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[Norman Baker (Lewes) (LD)]

As my hon. Friend is talking about Sussex, perhaps he will allow me to intervene on that point. The figure is probably even smaller for Newhaven. Does he also recognise that one of the strengths of coastal communities around the country these days is how they are taking advantage of the investment being made in renewable energy off the coast? There has been a particular renaissance in jobs in Newhaven, where hundreds of jobs have been created through the renewable energy industries. Does he share my disquiet at the knee-jerk reactions against renewable energy, which damage job prospects in our coastal communities?

[Mrs Anne Main (in the Chair)]

Before Mr Pugh responds to that, I ask that interventions be kept brief, particularly by those who wish to speak in the debate.

[John Pugh]

I agree with my right hon. Friend. He illustrates the point that people who work in coastal towns do not invariably work in the leisure sector. In other words, the vulnerability of resorts to changing leisure trends differs. It can be minimal in some cases and almost total in others, for example those resorts founded around caravan parks and the like. We must also bear in mind that many resorts, for example Bournemouth, are big conurbations in themselves. If we take Greater Bournemouth as an area, it has a population almost equivalent to that of Liverpool.

One thing surprised me in the Hallam research and I will say a little about it. What the research picked up was, in part, a north-south divide as far as resorts are concerned. Hallam says that at the moment the towns doing best off the back of tourism are largely, but not invariably, in the south, and those doing worst are largely in the north; I note that the hon. Member for Blackpool South (Mr Marsden) is here in Westminster Hall today and Blackpool is an example that Hallam cited as one of the resorts that has been most hit by change in leisure trends. So there appears to be some sort of north-south divide—not exclusively, because obviously some areas along the Essex coast have taken a hit too. However, there is probably a different story to be told about those areas and their branding.

It is the upmarket south-coast resorts that are probably faring the best at the moment, and that links back to other areas of Government policy. One of the best ambitions of the coalition is to rebalance the economy, but as far as the north is concerned that has largely been seen as a matter of city deals. There is a logic in that, as cities are obviously crucial, but it can mean that resorts are overlooked. That is because cities in the north, as they develop, can compete in new ways against resorts. We have certainly seen that in my area. Manchester and Liverpool are now very active in the conference sector; in a sense, they have stolen business from places such as Blackpool.

Similarly, Liverpool’s retail expansion has undoubtedly damaged Southport’s more bespoke offer. Hotels and restaurants have massively proliferated in city centres so that their tourism, marketing and hotel offer has become qualitatively different from what it once was. City centres are now sold not as hubs of industry but as leisure destinations in their own right, and cities are better connected, and will be still better connected in the future, than many other areas. That is sometimes to the detriment of resorts. For example, electrification around Manchester may deprive me of a train from Southport to south Manchester. That would be excellent for people who want to get across the country, but it would not be helpful if they want to come to Southport for whatever reason.

That development would not be so bad were it not for the fact that in many parts of the north the key local decision makers do not focus on the coast at all. They tend to be very city-bound. For example, the Merseyside local enterprise partnership is dominated by Peel Holdings, which is legitimately concerned with developing its logistics business out of the docks and is not necessarily tasking itself, night and day, with encouraging tourism further up the coast. Also, the new money—if there is new money at all—tends come in via the cities and not through other routes. Although there is the coastal communities fund, and we are glad to have it, the per capita spend of that fund is a drop in the ocean compared with city deals.

It does not help that traditional council budgets and funding have been—let me put it this way—severely stressed. Many a council has done fairly obtuse things under those circumstances and cut first the activities that bring more people into their area, in order to concentrate on what they regard as their core business, which is often social services and the like; resorts have appreciable expenditure commitments in that regard. Alternatively, councils put up parking charges and drive people away. I have a particular crisis in my own constituency at the moment because the local council has decided to cut back on the iconic botanic gardens in Southport that bring people into the town, as a cheese-paring saving that will further damage the tourist industry.

In addition it does not help that, in an age of retail retrenchment, when chain stores are considering what to do about their retail offer, they look first at those towns that have a 180^o catchment area and—whether or not they are populous—the chains use their models to decide that they will close branches in those towns first.

I am not here today just to complain, harass the Minister and ask for more and better things, although of course I will do all that. I accept that in an age of austerity coastal towns have to make their own weather; in Southport, we make our own weather and it is sunny all the time. However, we need to put Government coastal policy in the context of wider Government policy. We cannot ignore transport and the knock-on consequences of electrification, and think of coastal towns as a separate thing.

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[Mrs Anne Main (in the Chair)]

I call Mr Alan Campbell and remind Members that there is a fixed four-minute limit.

[Mr Alan Campbell (Tynemouth) (Lab)]

It is a pleasure to follow the hon. Member for Southport (John Pugh). I agree with much of what he said and congratulate him on securing this important debate.

I, too, welcome the report from Sheffield Hallam university. My only quibble is that the press release accompanying it talks about seaside towns from Brighton to Bournemouth in the south and Scarborough to Southport in the north. Alliteration may have triumphed, but there are important seaside towns in the north-east and my comments will be based pretty much around them.

The report confirms that many seaside towns have weathered a severe economic storm pretty well, but they face an uncertain and difficult future. Only yesterday, the North East chamber of commerce reported that economic growth in the region is considerably slower than it was a year ago. At a time when many families are struggling to pay their food and energy bills, a holiday is a distant prospect for many. Seaside destinations abroad are certainly out of their reach; ironically, when seaside destinations in this country see an upturn, they would welcome those families.

My first observation is that where regeneration happens in my constituency, seaside towns are often well placed to provide jobs and attract visitors. They are often best when there is a partnership with local businesses that have a strong interest in their home town. However, local authorities are important as well. At a time of economic growth, it is important that resources are available to local councils so that they can make sure that regeneration continues.

Secondly, in my experience, regeneration always takes longer than expected, and certainly longer than one would want it to. Money therefore has to go in over a long period. Government should be prepared for that. Thirdly, economic success and regeneration in coastal and seaside towns depends as much on the spending power of residents as on that of visitors, so regeneration has to bear residents in mind. Whitley Bay, for example, is regenerating the iconic Spanish City. We are also regenerating the seafront, removing eyesores such as former hotels, providing new schools and redeveloping the Playhouse theatre, which is for people who live there as well as people who will want to visit.

The first concern that I put to the Minister is whether there will be sufficient economic growth, and whether it will feed through to public funding for regeneration projects over a long period. If we get back to a 1930s level of public spending, we will end up with a deteriorated public realm; we saw that as recently as the 1980s, and seaside towns bore the brunt of that. Whitley Bay is to lose its police station but retain a police presence. The police presence is more important in a town like that—it has an evening economy that is very expensive to organise and police—than it might be in other parts of the region.

My second concern is about employment. The report states that Whitley Bay has about 1,100 people, and Tynemouth has about 700, employed in tourism. That is 100 more in Tynemouth, where there has been considerable regeneration, but 400 fewer in Whitley Bay, where regeneration has been somewhat delayed. In the north-east we have problems with a relatively low-wage economy, zero hours and under-employment. If seaside towns depend on the spending power of residents as well as visitors, and we end up with a low-wage economy, seaside towns will continue to struggle. We also need better access to broadband.

[Mrs Anne Main (in the Chair)]

Order.

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[Mr Sanders]

There is a case for looking at the VAT rates in comparison to those in Europe. A competitive advantage is given to some European countries, and the Government need to look seriously at that.

Coastal communities have a great future. Most of them are in beautiful environments, and that can attract people to live and work there. They are areas that lend themselves to cultural activities and to creative and high-tech industries. They are entrepreneurial centres that often have a high percentage of small businesses. For example, 75% of all internet traffic in north America used to travel on equipment built in Paignton in my constituency by Nortel Networks. Unfortunately, the company went bust in 2001, but at its height in 2000, it employed more than 6,000 people. Wages lifted across the board, and tourism in the area increased because of the number of business people coming in. Out of its ashes, we now have a good embryonic high-tech sector that needs nurturing and support. That could lead to more sustainable full-time jobs.

The future is to diversify away from an over-dependence on one industry and to have a number of different industries supplying jobs, including tourism—whether that is niche tourism or more upmarket tourism—and that can only be helped by such things as a VAT reduction. My main request to the Government is not on VAT, because that will take some time, but for something quick. I ask them to increase the amount of money in the coastal communities fund by a significant amount by raiding a tiny percentage of the regional growth fund. As small coastal communities are full of small businesses, they cannot lever in the kind of private sector money that they need to compete fairly for regional growth funding. They just do not succeed in their bids for regional growth funding. The coastal communities fund, which is tailor-made for coastal communities, is the obvious way forward.

There are three things every coastal community needs: good skills to attract inward investors and to create jobs locally, better connectivity—I am grateful for the money that has gone into the Kingskerswell bypass in my constituency—and affordable housing.

[Mrs Anne Main (in the Chair)]

Order.

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[Chris Ruane (Vale of Clwyd) (Lab)]

I have two coastal towns in my constituency: Prestatyn and Rhyl. Both are blessed with a built environment and a natural environment. The backdrop to both is an area of outstanding natural beauty—one of only three in Wales—and the Victorian poet Gerard Manley Hopkins spoke lyrically about both. Both towns are blessed with beaches, and the Victorian artist Cox painted Rhyl beach. Both also have a coastal footpath and are part of the Sustrans national cycleway. Prestatyn is at the northern end of Offa’s Dyke, and there are the Prestatyn Morfas—the marshes—which I helped to protect in the local development plan five years ago. Rhyl has a harbour, mudflats and a marine lake. Both towns have excellent natural and built environments.

The Prime Minister often slags off the Welsh Government for a lack of focus and investment, but let me just tell him what they are doing in Rhyl and Prestatyn. In Rhyl, they have spent £10 million on a new harbour. They are spending £12 million on new flood defences. In Prestatyn, they are carrying out a £4 million revamp of the Nova leisure centre and a £7 million revamp of the railway station. In Rhyl, they are having a £28 million new housing scheme. They are knocking down houses in multiple occupation, which are six storeys high, and building two-storey family accommodation, which will be put up for sale, changing the tenureship in the community.

In Rhyl, a £25 million new school was started in December, and there will possibly also be a £28 million new faith school. Some £22 million has been spent on the town’s first college, including a £6 million extension, and £6 million has been spent on a sixth-form college. Some £22 million is being spent on a new community hospital, and £5 million has been spent on a new clinic in the town’s West ward. That is what the Welsh public sector is doing in Rhyl and Prestatyn.

The private sector is also playing its part in investing in coastal towns in my area. The Apollo cinema—a £2.5 million investment. A new hotel in Rhyl—£5 million. A new bus station and railway station—£5 million. In Prestatyn, we have had a multi-million pound new shopping centre.

What are central Government doing for investment in my constituency’s coastal towns? Let me tell the House: 100 years after its opening in 1914 they are closing down the Army recruitment centre. In Rhyl they are closing the office of Her Majesty’s Revenue and Customs in Churton road and the family courts in Clwyd street, and they will either close or relocate the Crown post office in Water street. I believe that in Wales and in the coastal towns of my constituency we have the answer—a Welsh solution—to the UK problem of investment in seaside towns. In the past 50 years, the struggling areas—coal, steel, inner city and rural communities—have had billions of pounds put into them, and rightly, because they were struggling; but the long-term decline, politics aside, of coastal communities—[Interruption.]

[Mrs Anne Main (in the Chair)]

Order.

[Chris Ruane]

The 40 or 50-year decline, especially of seaside bucket and spade communities, has not been addressed properly. In Wales it is now being addressed and I urge the Minister to take a look at the best practice in Wales, and at what Carwyn Jones, the First Minister, Edwina Hart, the Economics Minister, Huw Lewis, the Education Minister, and Carl Sargeant, the Floods Minister, are doing.

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[Ian Swales (Redcar) (LD)]

My constituency covers the part of the north Yorkshire coast that includes the vibrant town of Redcar and the pretty village of Marske. It is also the east end of the Tees valley city region. One issue for coastal areas such as mine is, as my hon. Friend the Member for Southport (John Pugh) said in his introductory remarks, identity and vision. Whether the coastal town wants to be a resort, a day trip leisure destination, a dormitory town or even an industrial centre has major consequences for planning its transport, regeneration, accommodation provision, business development, housing, the environment and so on. I see all that in my constituency. When I see a list of the issues that coastal towns have, I can usually identify with pretty well all of them.

Studies show that the most successful coastal towns have certain characteristics. They have an enterprise culture. Many are close to major population centres, which helps them to regenerate. They have good transport and communication links. The hon. Member for Folkestone and Hythe (Damian Collins) talked about the revival in Kent, and good transport links can turn coastal towns into dormitory towns; the Government should make that a policy target. Successful coastal towns have access to business opportunities and understand the wider area in which they sit.

Things have been improving in my area under the Government. The steel works have restarted in Redcar, and the Department for Environment, Food and Rural Affairs has invested £30 million in the seafront, which has provided a new promenade. We have had leisure investment. The Tees Valley local enterprise partnership has been active and successful. The regional growth fund has been pouring money into my area at a rate five times greater than under the old regional development agency. Many new industries are active, business formation is up 19% in the past year and we are about to get a new oil and gas college. I could go on. Unemployment is down by more than 35% since 2010.

I agree that we need to have aspiration, ambition and a positive outlook for our coastal towns. There is still a lot more to do in my area, in particular on entrepreneurship and skills development. In the last table I saw, Redcar and Cleveland had the lowest number of entrepreneurs per head in the country. That is certainly a target for our part of the coast. We also need to make our enterprise zone function. There was inertia after it was given to an outfit called Onsite, which was not enterprising and did not want to do anything.

I am optimistic about my area. There are various things that the Government need to do. They need to continue with the LEP model, which serves my part of the world extremely well, although I accept it may not do so everywhere. They must continue to support job creation in areas of the country, such as Redcar, where we have economic capacity—people, houses and school places—without the need for massive extra investment. It is sensible for the country to invest in those areas. They must give Tees valley the European money that it qualifies for. It has a status that results in a fair amount of money coming in, so let us keep it coming directly to the area.

We have benefited from the coastal communities fund. I ask the Government to look closely at favouring areas in which the licence income is generated. We have 27 turbines just off our beach, in addition to gas pipelines, cables and so on. That is where a lot of the coastal community money is generated, so let us make sure we get our fair share of it back again. We need an electrified rail line in the Tees valley and to Middlesbrough—

[Mrs Anne Main (in the Chair)]

Order.

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[Mrs Anne Main (in the Chair)]

I would ask you to draw your remarks to a close.

[Andy Sawford]

I will do. For all those reasons—whether housing, supporting tourism, universal broadband, giving our young people a chance or a regeneration strategy that opens up opportunities to all areas of the country—we need a Labour Government this May.

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[Penny Mordaunt]

If that is what the hon. Gentleman is reliant on to create jobs and not just economic growth, but quality of life in his area, he will be on a sticky wicket. The challenge in looking to the future is to put infrastructure in place to create jobs in sustainable new industries. That will mean change for many of our coastal communities but, from what I have seen, they are well placed for that, because they are incredibly adaptable.

What we need to ensure, through that long list that I just mentioned, is that these communities have investment. They need the opportunities to lever further funds, whether European or private sector, and to unlock the good will that exists though community asset transfers and other things. I encourage the hon. Gentleman to look at the many examples that have been mentioned today and to raise his ambition for his area.

I will touch on two items that I mentioned in the list. Local enterprise partnerships have been a tremendous success. They are well established as the bodies that are taking forth economic development. They are clearly evolving, but they have achieved a huge amount. About half of all LEPs are in coastal or estuary areas. As part of the growth deals in July, we committed more than £500 million to projects in coastal areas and in the autumn statement the Chancellor announced a further allocation of £1 billion of investment in the second round, and the bidding process is well under way for that. However, as the hon. Member for Southport said, we need to do more to ensure that coastal communities have a high profile in LEPs and that their projects, ideas and initiatives are well embedded in the local economic strategy. I will shortly make some announcements that will help to strengthen that, but we are already talking to LEPs about the importance of coastal communities and doing things in a more joined-up way.

Secondly, I want to touch on the coastal communities fund. The fund to date has provided £65 million in grants to 117 projects across the UK, attracted a further £103 million of other private and public sector funding and it is forecast to deliver just shy of 9,000 jobs, nearly 4,000 training places and apprenticeships and more than 400 new business start-ups. It has been a tremendous success.

I want to see that fund adapt, improve and grow. It must be embedded in the local economic strategy. We must also look at it in the round to unlock the further good will and funding that coastal communities fund projects could lever. I am encouraged by the number of hon. Members who spoke about successful projects in their areas. Indeed, the hon. Member for Barrow and Furness (John Woodcock), whom I thank for the time that he has spent with me, has a bid that is still live. I hope to make announcements on the next round of coastal communities funding shortly. He will understand that I cannot give him assurances, but his is a strong bid, as is that of my hon. Friend the Member for Lancaster and Fleetwood (Eric Ollerenshaw). We were encouraged by the helpful correspondence we received over Christmas, so I thank him for his role in that.

Our coastal towns are reinventing themselves. Government have provided all this help, but those communities are really the heroes here, whether it is Lowestoft, which is reinventing itself as a hub for clean technology, or Folkestone, which my hon. Friend the Member for Folkestone and Hythe (Damian Collins) spoke very eloquently about, with its tremendous input on creative industries. Whether it is sustainable fishing—[Interruption.]

[Mrs Anne Main (in the Chair)]

Order. There is a Division in the House. Has the Minister concluded her remarks?

[Penny Mordaunt]

For the benefit of everyone, I will sum up very quickly. I assure all hon. Members that the matters they have raised—having a higher profile for coastal communities with local enterprise partnerships, additional support for those with the biggest challenges, including those in the north, and continued support and investment—will come to pass. We should be optimistic about the future, and the only return to the 1930s will be in some beautifully renovated lidos. I thank all hon. Members, and particularly the hon. Member for Southport for securing the debate.

[Mrs Anne Main (in the Chair)]

We will allow 15 minutes before the commencement of the next debate.