Personal bankruptcy hotspot list dominated by seaside towns

Seaside towns dominate a list of the top areas for personal bankruptcies, according to a new study.

Monday, 7th August 2017, 4:14 pm
Updated Monday, 11th September 2017, 11:55 am
Blackpool was amongst those towns with the most personal insolvencies last year

Torquay, Scarborough, Great Yarmouth and Blackpool were among those with the most personal insolvencies last year, said Moore Stephens.

The accountancy firm said its research showed that coastal industries and tourism continued to decline.

The top spot was Torquay, with 43 insolvencies per 10,000 residents, compared with a national average of just under 20.

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The report said seaside tourist areas often lacked the economic diversity of bigger cities and were too reliant on low-spending domestic tourists for employment.

Many local entrepreneurs and educated young people are leaving traditional holiday destinations and moving to areas such as London, said Moore Stephens.

Spokesman Jeremy Willmont said: "Bankruptcy in the more rundown of the British seaside towns has become an epidemic.

"As seaside tourism declines, there is less chance for these areas to reinvent their image as exciting, vibrant places for business to thrive.

"High levels of debt show the underlying fragility of those economies and the low levels of accumulated wealth in these towns."

The top 10 list compiled by Moore Stephens was Torquay, Stoke-on-Trent, Scarborough, Isle of Wight, Great Yarmouth, Corby, Kingston upon Hull, Plymouth, Ipswich and Blackpool.