Mr Mellors described Fantasy Island as a “magnet” for the area and warned its reduced opening hours will have a knock-on effect for other local businesses.

“I can only see it getting worse,” he said, adding that the Government has got it “completely wrong”.

Mr Tice warned that the Chancellor’s national insurance hike to increase the public purse is proving counter-productive.

He said: “The potential impact on the Government revenues could be dramatically lower than they were all forecasting at the Treasury and the OBR which will mean at the national level, a massive shock is coming down the pipe.”

Mr Tice, who has enjoyed a successful business career, raised concerns of growing unemployment and more benefits bills.

“There’s a terrifying double whammy to the national accounts,” he said.

“They’ve [Government] just got this catastrophically wrong at every level and they’ve got to reverse course on a bunch of this stuff. They’ve got to start saving some proper serious money.”

The latest official figures show the UK’s unemployment rate (4.6%) is at its highest for almost four years, with Mr Tice saying the Chancellor is to blame “full stop”.

Mr Mellors said he has had to increase prices “slightly” but is reluctant to push them higher, explaining the park traditionally has been popular with former mining communities.

He said while people are still visiting the free-to-enter park, they are spending less than before, claiming many are “fearful” of a potential tax rise in October.

Mortgage consultant Will Taylor, 29, visits Fantasy Island every year from Yorkshire and told the Express he was being more frugal with his spending.

“It’s just the cost of living, everything’s going up,” he said as he visited the park for his daughter’s birthday.

“Everything’s just getting more expensive, [especially] food, [we are] spending a lot more on food nowadays.”

Ann-Marie Dixon, a charity worker from Derby, has visited Skegness for the last four years with friends and says they are being more careful with their money this time around, including buying less drinks when out.

“I think everybody’s feeling the pinch,” the 44-year-old said. “My husband, he’s got a good job and mine’s not too bad, but I think even people who are high earners still have to watch what they do with [their] money.”

Fantasy Island has dozens of rides, including rollercoasters and drop towers which can be seen for miles along the coast.

It is also home to hundreds of static caravans but several pitches now lie empty.

The homes can be bought or letted out as a holiday home but sales have fallen which Mr Mellors is attributing, at least in part, to Ms Reeves’ winter fuel payment cuts which she has since U-turned on following a campaign by the Express.

“If you walk around now, there’s less and less pensioners because they can’t afford two homes,” he said.

In Skegness town centre, retired teacher Jean Booth, 69, explains she was one of the millions of pensioners to lose her winter fuel allowance.

She’s from Yorkshire and spends plenty of her time at her caravan in the seaside resort. She too is spending less than usual.

“We don’t go out, occasionally we might, just for pleasure, walking around,” she said. “It’s cheaper to run the caravan than the flat we have because it’s economy seven heating which costs triple what we pay at the caravan.”

Local businesses in the heart of Skegness have also noticed a drop in spending, despite the recent hot weather drawing big crowds.

On the busy esplanade, Seaside Treats owner Sharon Simpson said it has been a “quiet” year.

“The people here haven’t been spending, even though the weather’s been lovely which is hard for us because normally Easter time is when we start taking the bulk of our money, and it’s not been that busy.

“It’s starting to pick up now but only because we’re coming towards the six weeks [of school holidays] … but it’s not been a great year.

“I just don’t think people have got the money.”

She added: “The older generation, with obviously [the Government] taking away winter fuel has made a big difference, because a lot of my customers this time of year are older generation and they all say they’re having to be careful with money.

“I think it has definitely made an impact because we’re just not seeing the sales this year.”

Back at Fantasy Island, Mr Mellors said he believes Ms Reeves has “completely ignored” the unique position of seasonal businesses and seaside towns.

“I do not think Rachel Reeves has considered any consequences on the decisions and the hospitality sector, they’re killing it and it needs help,” he said.

“It needs either a VAT reduction, it needs something to do with the power, especially for ourselves because we are seasonal, it is even harder for us to be able to make money back throughout the other times of the year. We need help.”

“SOS, Save Our Skegness… Save Our Seasides,” added Mr Tice.

In response, a Government spokesperson said: “We are a pro-business government. Economic activity is at a record high with 500,000 more people in employment since we entered office.

“We are protecting the smallest businesses from the employer National Insurance rise, shielding 250,000 retail, hospitality and leisure business properties from paying full business rates and have capped corporation tax at 25% – the lowest rate in the G7.

“We delivered a once-in-a-Parliament budget last year that took necessary decisions on tax to stabilise the public finances and fund public services, including the NHS. We are now focused on creating opportunities for businesses to compete and access the finance they need to scale, export and break into new markets.”