Coastal Towns

Bob Russell Excerpts

Tuesday 6th January 2015 Westminster Hall

[Mr Adrian Sanders (Torbay) (LD)]

I congratulate my hon. Friend the Member for Southport (John Pugh) on securing this debate. To add to what he said, an important factor for coastal communities is their geography. They are 180° communities; they can only draw on the 180° market behind them. They are peripheral to the main centres of population. They can be end-of-the-line towns that have to create something for people to want to visit them; otherwise people go elsewhere. Coastal towns tend to have a similar demography: an older population with high welfare dependency. As has been said, the brightest and best tend to move way.

Historically, most of our coastal communities were based around fishing and a hinterland of agriculture. The railways came, and then came tourism. Social change came with the working man being given holidays. A number of our Victorian seaside resorts grew and grew. Then they became Meccas for retirement. After people had enjoyed a holiday in a coastal community, the idea of retiring to the seaside was attractive. Then came the invention of the jet engine and the package holiday, and that prime position for domestic primary holidays ended.

That has left our larger Victorian seaside resorts with a number of challenges. It is not a north-south divide; the divide is between some of the larger, old Victorian seaside resorts and the rest. Scarborough, Blackpool and Torbay have similar problems. There are towns on the south coast that tend to boom, but they are exceptions rather than the norm. The challenges that face us are that primary holidays are now taken overseas. Brands and chains have largely overtaken the family-owned small businesses that used to plough their profit back into the area. The profit from tourism now largely leaves the area. There has been welfare migration, partly as a consequence of the older hotels and guest houses converting to houses in multiple occupation and being available to rent, which has led to insecure employment, low incomes and rising social costs, but it is not all doom and gloom. There is a great future for our coastal communities.

[Sir Bob Russell (Colchester) (LD)]

The picture that my hon. Friend has painted could be replicated along the Essex coast, including in Clacton. Does he agree that the VAT campaign has to take in the whole country, including historical inland resorts, and not just coastal resorts?

[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.