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Insolvency worries mean it’s not so nice to be beside the seaside

We might like to be beside the seaside…but for some people the coastal dream can easily become a nightmare.

In fact, out of the country’s top ten insolvency blackspots, seven are seaside communities.

High on the list are Yorkshire seaside favourite Scarborough and current UK City of Culture Hull at three and seven.

And even Blackpool, a firm favourite with generations of holiday makers finds itself coming in at number 10.

Paul Moorhead, of leading Sheffield insolvency and business turnaround specialists Graywoods, says it should come as no surprise that a life by the sea might not be as idyllic as it sounds for anybody thinking of launching a business.

“These are communities that really are suffering from the decline of major industries, things like ship building and fishing,” he said.

“Even tourism, which is what most people think of when they think of the seaside, is notorious for short term contracts, casual work and highly seasonal working patterns, none of which add up to a successful long term business strategy.”

Doubts over new advice body

Concerns have also been raised that the government’s plans for a new single financial guidance body may be ineffective in helping people with debt problems.

The Financial Guidance and Claims Bill, which was introduced following the Queen’s Speech in June, aims to create a single point of contact for people looking for advice on a range of financial issues.

The Single Financial Guidance Body will, if the bill goes through, replace the Money Advice Service, The Pensions Advice Service and Pension Wise.

But Paul pointed out that areas like seaside communities were in need of very specific advice, not general guidance.

“My very real concern is that the creation of this new body will work for neither individuals nor businesses,” he said.

“By amalgamating complex areas like debt and pensions, the government is creating a generic one size fits all service that will not other detailed advice to specific communities on problems that are unique to them.

“The issues facing a community like Scarborough are very different to those in a Midlands industrial town.

“Tourism may be seen as a growth industry but it is an industry which, as seaside towns are discovering, has changed enormously in the past half century.

“People are much more discerning now, they are more careful in how they spend their money and rather than a long weekend in Scarborough or Blackpool they will go for an evening at a good restaurant at a luxury hotel with an overnight stay.”

For more information about how to avoid a seaside insolvency problem becoming a crisis, call us today for a free and confidential discussion of your options.

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