With the growing threat of very hot summers, especially in the traditional sunny areas in mainland Europe, it is likely that many people will want to stay in the UK which will potentially have very significant benefits to the national economy in terms of spending and job opportunities. For example, in North Yorkshire, tourism is now worth £1.5 billion annually and supports around 11,000 jobs directly and indirectly in the holiday industry, and Scarborough will shortly be celebrating its 400th anniversary as a spa town.
The LGA commissioned Pragmatix Advisory to explore the economic challenges facing rural and coastal areas, with a particular focus on deprivation, and outline what steps government can take to strengthen the recovery and resilience of these communities within the current context.
National economic growth can only be achieved if every local economy is firing on all cylinders. Only with the right powers and adequate long-term funding which allows councils to plan properly, can we play a lead role in unlocking the labour market, building new affordable homes, creating jobs, plugging skills gaps and delivering on other key government priorities. The LGA is developing a white paper with an ambition to secure a national-local partnership in which local government can work to its full potential for our people, our places and our planet.
Devolved funding and increased influence on design services that meet local needs and priorities, rather than to one-size-fits-all approach, will strengthen our ability to create inclusive local economies. What works for major cities is different to what is needed in suburbs, towns, rural and coastal areas and more mixed communities.
Coastal areas have a fundamental role in trade and commerce and provide an important national resource in terms of food production, aggregates and offshore energy. They also play a significant role in the visitor economy.
Financial pressures on local government are limiting the ability of coastal local authorities to regenerate and support their towns. We are calling on the Government to provide long-term, sustainable funding for our seaside towns in the Spending Review. Future funding for coastal areas must focus on helping to extend the season and mitigate seasonal variation in employment.
While tourism prospects are positive in many areas, the loss of previous industries such has fishing has left communities with a limited range of alternative employment sources. Strengthening the diversity of employment options in coastal communities would help mitigate against the seasonality and fluctuating demand that are frequently key features of tourism. Other sectors such as renewable energy are a strong developing industry for coastal areas, and work is being done to develop the appropriate skills to support work locally. This should complement promoting or invigorating tourism, to ensure a resilient local economy that can sustain employment outside of seasonal peaks. However, it is important that these new industries genuinely employ local people and do not bring in external employees on temporary relocation plans. This does not help develop the area sustainably.
The LGA has previously published research into how 13 areas have undertaken a cultural approach to regeneration – an approach that requires good connectivity. While this type of approach underpins the visitor economy, the aim is to create thriving communities where people are proud to live and businesses are keen to invest. This approach is supported by more recent investments through the Levelling Up Fund and UK Shared Prosperity Fund, but more needs to be done to ensure the visitor economy is considered in determining other government funding decisions. For instance, investments through the aforementioned funds and the scale of the visitor economy are not factors considered in assessing bids for funding coastal defences. It is contradictory to invest money in levelling up an area, and then no invest in protecting the new investment from coastal erosion and flooring.