As September draws to a close, the lively coastal summer season in South East England quiets down. While the region has long been one of the UK’s economic powerhouses, as well as the nation’s gateway to Europe and the world, with Gatwick Airport, the Channel Tunnel, major ports, and strong highway networks linking people and goods, it faces a dual reality: strong growth potential on one hand, and pockets of persistent deprivation on the other. Much of this imbalance stems from its seasonal reliance on tourism.
Current challenges
According to the Index of Deprivation 2019 (the most recent available), South East England performs better than many other regions overall but still contain some of the nation’s most deprived communities, with some coastal areas falling into the nation’s 20% most deprived areas. For example, according to West Sussex County Council’s Public Health Briefing published in May 2025, around 49% of households in West Sussex were classified as deprived in at least one of the four dimensions of deprivation: education, employment, housing, and health, and the deprivation level is on the increase since 2011, while the deprivation level in South East overall remain unchanged.
In the South East, coastal areas are likely to be more deprived. Towns like Bognor Regis, Worthing, and western parts of the Brighton coast are struggling with limited knowledge-based jobs, commercial interest, higher unemployment, lower levels of education and training attainment and increased crime, despite trying to brand themselves as coastal cultural and leisure hubs for the summer.
The region also faces demographic pressures. The Office for National Statistics projects that by 2040 nearly one in four residents in the region will be over 65. An ageing population has widened income divides between younger and older residents, while health-related deprivation and disability are on the rise.
The heavy dependence on tourism compounds these issues:
- Lack of resilience – seasonal ‘boom and bust’ could prevent sustainable growth.
- Uneven distribution – revenue rarely spreads through local communities in an equitable way.
- Cost-of-living pressures – surges in seasonal demand drive up prices, worsening affordability for year-round residents.
Looking ahead
Recognising these risks, local authorities have placed economic diversification at the centre of their strategic plans. Councils across West, Mid and East Sussex are prioritising investment in business parks, growth hubs, and innovation clusters designed to harness the region’s strategic advantages in connectivity and logistics.
Examples of business parks include Lancing Business Park near Worthing, which hosts over 250 businesses and over 3000 employees, mainly in high-tech electronics production, furniture manufacturing and so on, as well as Chichester Business Park, Woodingdean Business Park etc.
South East England is also positioning itself as a leader in renewable energy, with offshore windfarms and coastal energy projects providing both environmental and economic opportunities.
Local authorities are also investing in education, digital inclusion, and skills training — enabling more residents to access high-quality jobs, and support local businesses with technology, resources and talents they need to thrive. These plans have already shown some results. During the last year, jobs in Information and Communications have risen by 15%, more than the annual increase of 5% in England.
Our view
Despite its challenges, South East England remains one of the UK’s regions with the greatest untapped potential. Its abundant natural resources, strategic transport links, and rich cultural heritage all provide a strong foundation for growth. The planned expansion of Gatwick Airport will further enhance its role as a global gateway, unlocking opportunities for business, trade, and tourism.
But industrial investment alone is not enough. Future strategies must also ensure that communities benefit directly from economic development. Creating places where people want to live, work, and grow is as important as attracting inward investment.
At Coast to Capital, we are deeply aware of the economic inequality and over-reliance on seasonal economy within the South East. Our strong record of working with local authorities, public and private sectors show how we have supported the region to develop more diverse, resilient economic strategies that address responding to current challenges and turning plans into outcomes. Our work on transformation of the seafront cultural quarter in Bognor Regis is a prime example — designed to generate year-round business activity and create more knowledge-based jobs for local communities. We have also managed projects under UK Shared Prosperity Fund for Horsham, Tandridge and London Borough of Croydon Councils, ensuring financial efficiency and maximising benefit for the local businesses and communities. We believe that with our sustainable, forward-thinking mindset, as well as commitment to long-term value, we will be able to drive inclusive and comprehensive regional growth.
