Hastings Pier, which was severely damaged in an alleged arson attack last autumn, is desperately in need of investment to stop it crumbling into the sea. Amid news of public sector spending cuts, and question marks over the future of funding streams for regeneration, the Victorian edifice could be perceived as a metaphor for the town of Hastings as a whole, not to mention some of the other resorts that cling to the coastline of East Sussex.
Although the town has gained an impressive array of developments in recent years, Hastings ranks among the top 10 districts in Britain for the proportion of its employees working in public administration, education and health. Some 43% of workers in the town, and more than one-third of workers in Eastbourne, Worthing and Lewes, are employed in these fields (see table).
According to a report last year by the South East England Development Agency, areas in coastal towns in East Sussex, Kent and Hampshire could suffer from the spending cuts more than anywhere else in the UK.
Average earnings
Ivan Perkovic, head of research and economics at SEEDA, says the RDA has put considerable effort and money into regenerating the area, and points to rising average earnings as a positive outcome. But he warns: “Smaller coastal economies such as Hastings traditionally tend to have a relatively small private sector, low business start-up and survival rates and higher levels of unemployment and deprivation, which means they can be less well-placed to withstand economic shocks than other areas in the South East.”
Jeremy Birch, Labour leader of Hastings council, believes that this presents a risk for the town. “The private sector economy is relatively weak, and we have high levels of public sector employment because of the Child Support Agency and other public bodies that are based here,” he says.
Potential reductions in public sector funding for regeneration initiatives are also a threat.
On the surface, the announcement last year that Saga Insurance would be relocating to Hastings, creating 800 jobs, is a positive indicator for potential future growth. However, the move was made possible only because of the injection of public sector funding from economic development company Sea Space. It formed a joint venture with developer Land Group to deliver the 45,000 sq ft building at One Priory Square, which Saga moved into last month.
The public-private jv is also behind the creation of Enviro21, a network of low-energy efficient industrial units aimed at environmental and technology companies, and is building the second building for University Centre Hastings, which will double the student capacity. Sea Space is planning to submit an application for the next phase of Priory Square during the spring.
“We need to maintain momentum for projects such as these. Hastings has not yet reached the tipping point where the private sector can come in and deliver projects alone,” says Birch.
“I believe the needs of the town are being met, but we need to ensure they continue to be met.”
Employment growth
Future development in Hastings town centre, as well as other physical regeneration projects, could depend on securing funds from the Regional Growth Fund, says Birch. But Hastings is just one of a number of bidders for the £1.4bn fund, which aims to bolster private sector employment growth.
Bill Shepherd, director of Cluttons’ Brighton office, which is an adviser to Sea Space, says the Saga deal was “a fantastic result” for the local economy, but suggests parts of Sussex may be plunged into difficulty should public sector funding streams suddenly dry up.
“There will be a gap between the winding up of SEEDA and the establishment of Local Enterprise Partnerships. Where the finance will come from during that period is not immediately clear,” he says.
“Regeneration is ultimately dependent on some form of pump priming to make it work, and if the sources of funding are cut off, it is bound to affect the delivery of future schemes.”
Perkovic says that SEEDA is moving towards closure next March “in a fully professional way that minimises disruption to businesses and continues to support business growth”.
It is fair to say that the problems affecting some of the coastal towns do not reflect the overall picture across East and West Sussex as a whole.
“Our research indicates that, while larger urban centres, such as Brighton and Hove, may suffer a greater number of job losses, the private sector in those towns may be better able to take up the challenge than in those smaller economies,” says Perkovic.
Shepherd adds: “The retail sector is strong, with very few voids, and the IT and new media sectors have held up well.”
It appears, then, that the prospects for a split between the two halves of Sussex are stronger than ever, with the economy tailing off towards the east.
“East Sussex has typically suffered in terms of business growth from a lack of infrastructure,” says David Hadden, managing director of Stiles Harold Williams. “Hastings feels a little bit as though it is at the end of the line. That is an issue for East Sussex.”
Percentage of workforce in public administration, education and health
• Hastings 43%
• Eastbourne 38%
• Worthing 37%
• Lewes 35%
• South East average 25%
