WEYMOUTH and Portland is one of the UK's most 'bankrupt areas' according to new research.

The borough has been ranked 12th worst in the country when it comes to insolvency, with debt-stricken residents struggling to make repayments.

According to the data, there were 39.6 personal insolvencies per 10,000 adults in the last 12 months. The national average was 25.

In the league table of the 20 UK towns with the most bankrupt residents per head, the majority – 16 out of 20 – are seaside towns.

According to accountancy group UHY Hacker, which published the research, this is because coastal areas have struggled to replace dying industries such as ship-building and fishing.

Weymouth and Portland was severely hit by Ministry of Defence cuts including the closure of Portland Naval Base.

Worryingly, UHY Hacker said the increase in ‘staycation’ holidays has had done very little to improve the flailing economies of seaside destinations.

Peter Kubik, partner at UHY Hacker Young, said: “People living in seaside towns continue to fall into bankruptcy as the coastal economy fails to keep up with the rest of the country.

"Coastal towns are clearly struggling to reinvent themselves and throw off their old image."

The report says that seaside are struggling to attract businesses in sectors such as financial services and technology.

Another reason for the decline, according to the report, is that most of the worst hit seaside towns do not have a university, making them less desirable as destinations for businesses looking for skilled employees.

A knock-on effect is that young professionals move away to attend higher education and build their careers - leaving an ageing population in their wake.

Weymouth and Portland Action on Wages - WeyPAW - campaigns against poverty wages in South Dorset. Philip Marfleet, WeyPAW's convenor, said: “Here’s yet another statistic to confirm how serious the economic crisis in Weymouth and Portland has become. But it can’t be an excuse for employers to pay rock-bottom wages - breaking the law to pay below the National Minimum Wage.

“We want Dorset Council to take a much more vigorous approach to economic regeneration. We’ve also asked the council to take the lead in educating young people about their rights at work - and providing support for those who challenge unfair practices.”

The top ten areas worst-hit by insolvency included Scarborough, Torbay, Plymouth, Hull and Blackpool, although Stoke topped the list, with 51.9 personal insolvencies per 10,000 adults.