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Coastal Towns

It is important to recognise the degree of funding that the current structures allow. I entirely accept the need to co-ordinate better between different agencies and Departments; we certainly take that on board. Problems of transport and physical isolation were raised. It is impossible to divide transport issues and economic development, because one without the other does not make a whole package and does not enable an area to develop economically. The draft Local Transport Bill, published on 22 May, is a key part of the Government strategy to give local authorities stronger powers to meet local transport needs. I hope that hon. Members will discuss that with their local authorities. It will help to provide a more coherent approach across local authority boundaries, which will help the economic regeneration of areas. Older people’s social services and the grant funding were raised repeatedly by hon. Members. Within the calculation of formula grant, there is a relative needs formula for older people’s social services at present. The resident population is the main driver of the formula and additional elements take into account other factors related to need, including the number of very elderly people in the area. Currently, that is calculated using data on the number of people aged 65 and over who are resident in each area, the number of pensioners who live alone, the over-65s who are in receipt of pension credit and attendance allowance, pensioners who live in rented accommodation and those who are over 90. We expect to update the data that we use in the relative needs formula for the 2008-09 settlement. That will ensure that the calculations reflect the demographic changes and other trends in local authorities, which hon. Members suggested. Several hon. Members mentioned housing. All of us know that our communities need additional affordable housing. That has been taken on board by government at all levels. There are powers in the Housing Act 2004 relating to houses in multiple occupation. The local authority is the licensing authority, which will help to ensure good management standards in HMOs. However, the Government are keeping the effectiveness of that legislation under review and we are open-minded on the need to give additional powers in that respect. The point was made quite effectively that many coastal economies are characterised by tourism, which has seen some increase and some additional benefits, but more still needs to be done. Hon. Members also referred to low skills, low pay and seasonal employment. There is an urgent need to tackle those problems and diversify into other growth areas of employment. Local authorities will have an important role to play in that. Coastal towns have benefited from a strong national economy and a buoyant labour market, with a rise in employment. The key for economies in coastal areas is to diversify. I was in Southend just over a week ago and visited a very good, high-value company—KeyMed. That company has a social conscience. It is a good employer and has attracted new investment into the area. The mayor of Southend, the Japanese ambassador and I attended the opening. There are opportunities—Southend benefits from the Thames Gateway development—to draw investment into the area. I think that the hon. Member for Southend, West had his tongue in his cheek when he said that Southend’s problems were worse than those anywhere else. I made the point that we should celebrate our coastal towns, and the hon. Gentleman said that he was very proud to be the MP for Southend, West. Southend is one of the designated areas of change in the Thames Gateway. It is important that we recognise the other regeneration issues that we can use to benefit coastal areas. Southend has benefited from Southend university, through an investment of £14 million and the creation of a new university right in the heart of the town. Education opportunities are extremely important in coastal towns, as several hon. Members said. I do not know the details of the project to which the hon. Member for Torbay (Mr. Sanders) referred, but certainly I will look at that. Where we can drive up skills, create employment—[Interruption.] I would like to the respond to the hon. Gentleman. Where we can drive up employment, it is important to do so. I acknowledge the comments made in particular by my hon. Friend the Member for Milton Keynes, South-West and the hon. Members for East Worthing and Shoreham (Tim Loughton) and for Torbay about looked-after children. That is a very serious issue. It is ludicrous that several social services departments have to co-ordinate with one school. The ““Every Child Matters”” consultation paper that the Department for Education and Skills is examining now will be crucial to trying to address that extremely serious issue. I cannot do justice to all the comments made. I thank hon. Members for their comments. I hope that some of the measures that we are taking to ensure that we work better together across Government and at all levels of government—local, regional and national—will ensure that we can address the issues that affect coastal areas.