There's a second-order problem related to their decline as tourist resorts. The B&Bs and hotels that were no longer viable as tourism businesses became cheap accommodation for the indigent. Perhaps inspired by happy childhood memories, a lot of people experiencing crisis decide to move to seaside towns and find a ready supply of cheap accommodation.
The most severe deprivation in Blackpool is highly concentrated in a narrow strip just behind the seafront. The contrast is quite astonishing - Blackpool as a whole feels quite run down, but there are pockets that feel truly post-apocalyptic.
UK tourist towns were highly seasonal. No one wants to go to Blackpool in December. Providing accommodation for asylum seekers or whoever was year-round money with cost savings as those people's complaints could easily be ignored.
The most severe deprivation in Blackpool is highly concentrated in a narrow strip just behind the seafront. The contrast is quite astonishing - Blackpool as a whole feels quite run down, but there are pockets that feel truly post-apocalyptic.