Theme Park Slams Government Policies Amid Soaring Costs
Rising expenses are forcing a beloved seaside theme park to drastically cut its operating hours. This is just one of many businesses in Skegness, Lincolnshire, struggling under the weight of increased labor and energy costs.
Challenges at Fantasy Island
James Mellors, director of the Mellors Group which owns Fantasy Island, revealed the theme park is feeling the pinch from growing expenses. The park, a major regional employer, is reducing its operating days to save money. The business is also cutting its seasonal workforce by approximately 15%.
Electricity costs for the park surged to over £1 million, up from £600,000 in 2022, according to Mellors. The park faces a £400,000 hit in National Insurance contributions alone. The rising fuel costs are making it more costly for customers to visit as well.
“I feel like we’re getting hit in more ways than one,” Mr Mellors said. “We’re absolutely getting punched.”
—James Mellors, Director, Fantasy Island
Recent data shows the UK’s inflation rate remains stubbornly high, which directly impacts the cost of doing business for Fantasy Island and other similar enterprises (Office for National Statistics).
Impact on the Community
Reduced hours at Fantasy Island are expected to affect other local companies. Richard Tice, deputy leader of Reform UK, met with Mellors. Tice warned that the Chancellor’s policies might trigger a “terrifying double whammy.”
Visitors to Fantasy Island are spending less. Will Taylor, a 29-year-old, mentioned how the cost of living is prompting more frugal spending. Ann-Marie Dixon, a charity worker, stated that everyone is feeling the strain. Additionally, falling sales of caravan pitches at the park is tied to other factors.
Government Response
A government representative highlighted the pro-business stance, mentioning record-high economic activity. They pointed out measures to protect small firms from rising employer National Insurance and business rates. The government has also kept the corporation tax rate low.
The situation at Fantasy Island reflects broader economic difficulties faced by businesses and residents in the Skegness area. The outcome remains uncertain, but the park’s adjustments mirror the necessity to adjust to evolving financial conditions.