Skegness attraction shifts to five-day week and axes 50 jobs as National Insurance hike adds £400,000 to wage bill
One of Britain’s most beloved coastal amusement parks has been forced to slash its opening hours and cut staff after being hammered by Rachel Reeves’ controversial “jobs tax” that has sent wage costs soaring.
Fantasy Island in Skegness, Lincolnshire – a cherished destination for generations of British families – has joined a growing list of businesses crying out for help as the Chancellor’s National Insurance raid wreaks havoc on the hospitality and leisure sector.
The theme park, which attracts thousands of visitors each year to the Lincolnshire coast, has made the painful decision to switch from seven-day to five-day opening during quieter periods and is closing earlier to conserve funds in response to crippling financial pressures.
Exclusive Access to Crisis Talks
The Daily Express was granted exclusive access to emergency discussions between Fantasy Island representatives and Richard Tice, Reform UK’s deputy leader and MP for Boston and Skegness, who warned the Chancellor’s policies could deliver a “terrifying double whammy to the national accounts.
James Mellors, director of the Mellors Group which operates Fantasy Island, laid bare the devastating impact of escalating labour costs and soaring energy prices on the popular venue.
“I feel like we’re getting hit in more ways than one,” Mr Mellors told the Express. “We’re absolutely getting punched. Our electricity has gone up – it was £600,000 in 2022, we’re now over £1 million… so we’re closing two days, we’ve got to reduce power.”
50 Jobs Axed at Height of Season
As one of the area’s largest employers, Fantasy Island has been forced to make the heartbreaking decision to cut its seasonal workforce by approximately 50 positions – a 15% reduction – just as families look forward to their summer holidays.
The park faces an additional burden of up to £400,000 solely in National Insurance contributions following Reeves’ decision to raise employer NICs from 13.8% to 15% from April 2025, while also lowering the payment threshold.
Mr Mellors described this year as particularly challenging for local enterprises, attributing their difficulties directly to the policies emanating from Numbers 10 and 11 Downing Street.
Reform UK Sounds Alarm
Richard Tice, who represents the constituency containing Fantasy Island, has been a vocal critic of what he calls the Chancellor’s “delusional” economic policies.
The Reform UK deputy leader, who visited the park in August 2024 with fellow MP Lee Anderson, has maintained close contact with local businesses struggling under the weight of increased costs.
“These numbers are dire,” Tice has said of the government’s borrowing figures. “The truth is, Government spending and borrowing is completely and utterly out of control. Our growth forecast is collapsing and unless we change course, we are heading for a debt crisis.”
Energy Crisis Compounds Misery
The National Insurance hike comes on top of already eye-watering energy costs that have seen Fantasy Island’s electricity bill nearly double from £600,000 in 2022 to over £1 million today.
This perfect storm of rising costs has forced the park to make tough choices that directly impact both workers and visitors during what should be the busiest time of year for British seaside resorts.
The situation at Fantasy Island mirrors warnings from business groups across the country. Research from the Liberal Democrats suggests workers face hits of up to £11,000 over the next five years due to the employer NICs hike, with the Office for Budget Responsibility warning that 76% of the rise will be passed down through lower wages.
Broken Promises Haunt Labour
The National Insurance raid has proven particularly controversial given Rachel Reeves‘ own words from 2021, when she criticised then-Chancellor Rishi Sunak’s NI plans as a “jobs tax” that would “make each new recruit more expensive and increase the costs to business.
Now in power, Reeves has implemented the very policies she once condemned, with critics pointing out that Labour’s manifesto promise not to raise taxes on “working people” appears to have been abandoned.
The Federation of Small Businesses warned: “You don’t get to a pro-small-business Budget without the government honouring its cast-iron manifesto commitment to not increase National Insurance contributions, including on small employers.”
Tourism Industry in Crisis
Fantasy Island’s plight highlights the broader crisis facing Britain’s tourism and hospitality sector. The park has been a cornerstone of Skegness’s economy for decades, drawing visitors from across the country to the Lincolnshire coast.
During his August visit, Mr Mellors had discussed growth plans with Richard Tice but also highlighted the obstacles holding businesses back – “access, power, costs are going through the roof.
The irony isn’t lost on locals that a business designed to bring joy and create memories for families is now being forced to turn away both workers and visitors due to government policies.
What Happens Next?
As Fantasy Island implements its reduced hours and prepares for a leaner operation, the broader implications for British seaside towns become clear. These communities, already struggling with seasonal challenges, now face the prospect of their biggest attractions scaling back just when they need them most.
The situation has prompted calls from across the political spectrum for the Chancellor to reconsider. Shadow Chancellor Mel Stride branded it a “ticking timebomb that will lead to fewer jobs, lower wages and higher prices.
For the families who’ve made Fantasy Island a cherished part of their summer traditions, and for the 50 workers who’ve lost their jobs, the human cost of the “jobs tax” is all too real.
As one local put it: “It’s called Fantasy Island, but there’s nothing fantastical about having to close two days a week because you can’t afford to keep the lights on.
Title: Fantasy Island Ingoldmells
Author: Butlins2020 (own work)
Date Taken: 11 January 2020
Location: Ingoldmells, Lincolnshire, United Kingdom alamy.com+13commons.wikimedia.org+13commons.wikimedia.org+13
License: Creative Commons Attribution–ShareAlike 4.0 International (CC BY‑SA 4.0)
Original Commons page: File:Fantasy Island Ingoldmells.jpg
