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Shifting sands and sea change: How can our seaside towns respond to the productivity challenge?
With the summer holiday season just around the corner, coastal towns up and down the country will be hoping the sun comes out to tempt the great British public to the seaside. It can be easy to forget that many of these coastal communities are in desperate need of regeneration and economic revitalisation, suffering from ongoing decline of their core industries such as domestic tourism, fishing, shipbuilding and port activities, and the challenges of seasonality. Their location on the periphery of the country places them on the periphery of the economy, creating a host of socio-economic problems and in turn, barriers to economic prosperity for their communities. The recent publication of a House of Lords Select Committee report on “the future of seaside towns” provides a timely reminder of the scale and complexity of this challenge, and sets out a series of recommendations for how seaside towns can once again become prosperous and desirable places to live and visit. Reflecting the different stages of evolution of these places, the UK’s seaside economy is far from uniform. Some locations, like Bournemouth and Brighton on the south coast, have benefitted from a model of reinvention that is not available to all. Meanwhile, many smaller coastal towns have seen their unique selling point diminish. Their sense of isolation has left small town, seaside communities overlooked and facing profound economic and social challenges. Blackpool for instance, which tops the seaside destination ‘leader board’ in terms of visitor nights, faces some of the most acute deprivation in the country. The national imperative to drive up productivity and earning power of people across the country – as set out in the government’s Industrial Strategy – provides a further incentive and pertinent backdrop to the Select Committee’s recommendations. Last week saw the publication of a new Tourism Sector Deal setting out how the government will work in partnership with the tourism industry to boost productivity, develop skills and support destinations to enhance their visitor offer. It begs the question: how can Britain’s seaside towns respond to the UK’s productivity challenge and contribute towards national prosperity? The development of Local Industrial Strategies provides the most immediate opportunity for ensuring that the needs of coastal areas are better reflected in local plans to drive economic development, with most well underway via Local Enterprise Partnerships (LEPs) and Combined Authorities. Framed in context of the Industrial Strategy’s five foundations of productivity (ideas, people, infrastructure, business environment and place), there seem to be a number of key areas of opportunity to boost the economic prosperity of our seaside towns: Economic diversification: coastal communities increasingly need to recognise, promote and support diversification of their economies where a sole reliance on tourism is no longer a viable option. Much can be learned from places like Folkestone in Kent, where a new Creative Quarter has been delivered through a regeneration strategy based on the arts, the creative industries, and education. Transport connectivity: is holding back many coastal communities and hindering the realisation of their economic potential. Sub-optimal connections (such as inadequate rail connections and road access via single lane carriageways) can limit the potential for investment in economic diversification, and improvements to transport will be vital in supporting further economic development in isolated coastal communities quite literally at ‘the end of the line’. The forthcoming Shared Prosperity Fund is likely to provide a key source of funding in this regard, alongside the next round of the Coastal Communities Fund. Digital infrastructure: improved digital connectivity presents a significant opportunity to overcome the challenges of peripherality in coastal areas, and would help existing businesses, encourage new businesses, and enable people to work more flexibly from home to achieve the all-important work-life balance; a core part of the offer. Skills and aspirations: limited access to education, in particular to further education (FE) and higher education (HE) institutions, is severely restricting opportunities, denting aspirations for young people in some coastal areas and having a direct knock-on impact on local economic productivity and growth. Recognising that there is never going to be a ‘bricks-and-mortar offering’ of HE in every coastal town, this might necessitate greater scope for flexible access both to FE and HE, such as online, part-time and distance learning. Maximising unique assets: what makes coastal communities different is their unique asset: the coastal and marine environment that surrounds them. Seaside towns that have been most successful at reinventing themselves are those that have identified their own special character and USP. Key to this is a long-term, place-based vision that is supported by local leaders and grounded in each town’s unique assets, whether this be a combination of inherent geography, history, geology and ecology, or created features, such as attractions and culture. Examples of such assets include a university arts centre in Aberystwyth, The Stade historic fishing area in Hastings and a specialist university for the creative industries in Falmouth. The Stade historic fishing beach in Hastings, East Sussex Some of our recent work in the Lichfields economics team has focused on the huge growth potential of our seaside economies and making the case for targeted investment in infrastructure and associated projects to unlock this potential; in locations such as Gosport, Worthing, Southend-on-Sea and Eastbourne. With around half of all LEPs comprising coastal or estuarine areas, it will be interesting to see whether Local Industrial Strategies are embraced as an opportunity for renewed focus on addressing the skills gaps, low wage economies and aspiration challenges faced by many coastal communities. Whether by drawing on existing assets (such as historic infrastructure) or technologies of the future (such as emerging green industries that harness wind and wave power), it’s time for our much-loved seaside towns to play a more meaningful role in the UK’s plan to drive innovation and growth across the country.  


Housing Infrastructure Fund: The story so far….
It is now almost two years since the UK Government launched the Housing Infrastructure Fund (HIF) in July 2017. This blog provides an overview of the announcements made to date on what funding has been granted to lower and upper tier authorities across England to help unlock thousands of new homes. Lichfields has been involved in preparing a number of HIF bids across the country. First, let’s look at the Marginal Viability Fund (MVF), the smaller of the two HIF sub-funding pots. The MVF was designed to get housebuilding started quickly on sites where the upfront costs of putting in the infrastructure are not stacking up financially. Bids were capped at £10 million, although a higher level of funding may be awarded in exceptional circumstances if bids demonstrate a “transformational delivery of new homes”[1]. The value of MVF funding available to lower tier authorities (e.g. Districts and Boroughs) is currently set at around £900 million, of which, £866.3 million was provisionally allocated to 133 bids from lower-tier authorities in February 2018. To date, 94 of the 133 bids with a combined value of around £605.9 million have been approved by the Government. At the regional level, most of the approved funding has so far gone to lower-tier authorities in the South East and South West (£172.1 million and £121.5 million respectively), which is reflective of the two regions having the highest values of bids accepted by the Government in February 2018 (£224.5 million and £141.3 million respectively). In comparison, the East Midlands, West Midlands, North East, North West and Yorkshire and the Humber have lower combined values of accepted and approved bids (£291.2 million and £254.8 million respectively). These five regions also have lower values of accepted and approved MVF funding per resident then the other two.  MVF Status (May 2019) Note: The ratios of provisionally accepted bid funding and approved bid funding per resident have been calculated by using the total value of each funding and dividing it by the population of each region in 2017, sourced from the Office for National Statistics (ONS), Mid-Year Population Estimates (2018).   Unlike the other regions, none of the provisionally accepted bids submitted by authorities in London has yet been approved by the Government. This may change as the Greater London Authority (GLA) has signed a Memorandum of Understanding with the Government to fund the £110.7 million of London projects[2], which signals the intention of approving the funding eventually. The map below shows MVF awards by local authority to date. Approved MVF Funding by Local Authority (at May 2019) Note: the local authority boundaries do not reflect the changes that came into force during April 2019. Those areas that have not benefitted from the MVF still stand to potentially gain funding from the Forward Fund (FF), which is substantially larger than the MVF with £4.1 billion of capital available and a maximum bid value of £250 million other than in exceptional circumstances. So far, seven successful FF bids have been confirmed (see the table below), with a combined value of £1.16 billion, or 28% of the total FF pot. Almost half of the £1.16 billion has been awarded to the GLA to improve the capacity of the Docklands Light Railway and to pay for infrastructure to unlock housing in part of the Old Oak and Park Royal Opportunity Area. London could further benefit from the FF if the other large-scale bids the GLA submitted such as for expanding capacity on the East London line and funding infrastructure at Meridian Water are approved. Successful Forward Funding Projects (at May 2019) Whilst it may seem that London will be the major beneficiary of the FF, other regions still stand to significantly benefit from it, with projects in Oxfordshire, Cambridgeshire and Peterborough and Cumbria having been awarded over £100 million of funding apiece. Considerable amounts of funding were also announced for Devon and the North Cheshire Garden Village in East Cheshire. Lichfields assisted in the delivering the North Cheshire Garden Village bid by developing the economic case for the scheme and providing post-submission support to East Cheshire Council. With the final round for bids closing on 22 March, we can expect that the remaining £2.9 billion of FF will be allocated once Government completes its appraisal and final co-development process with upper tier authorities which is in progress. It remains to be seen exactly how the Government will use the additional £500 million of funding added to the HIF in the Chancellor’s 2018 Autumn Budget.[3] Further announcements are due shortly, and it will be interesting to see if and how the geographical allocation of funding changes as new HIF awards are confirmed. [1] Introduction Housing Infrastructure[2] Housing Infrastructure Fund Forward Funding Business [3] Budget 2018: HousingImage credit: Matt Buck