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Dark clouds: according to the findings of a new report Scarborough has been named as a bankruptcy hotspot

Dark clouds: according to the findings of a new report Scarborough has been named as a bankruptcy hotspot

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Scarborough has been named as the fourth worst area for insolvancy amid claims that coastal areas are being hit the hardest during the recession.

The findings by debt advice group ClearDebt show that last year six out of the 10 worst hit areas were on the coast – Blackpool, Torbay, Scarborough, Denbighshire, Hull and Great Yarmouth.

According to the figures Scarborough had 50.19 insolvent people per 10,000 compared with the national average of 27.20 per 10,000 during 2011 – the worst hit area was Blackpool with a rate of 57.70 per 10,000.

However the findings showed that four of the top 10 areas, including Scarborough, had lower than average unemployment rates.

A spokesman said that coastal communities have suffered from a number of factors including a decline in the tourist trade, the decline in manufacturing and their inconvenient location. He added: “Part of the problems for some coastal towns may be their continued dependency on tourism.”

He added that average weekly earnings in the 10 most insolvent areas were also significantly below the average weekly wage for England and Wales of £492 – Scarborough’s average weekly wage last year was £459.

“Coastal authorities as a whole underperform compared to inland authorities,” he said.

• Visit www.cleardebt.co.uk to read the report’s findings in full.