The Chancellor has been told she needs to step in and help other businesses as well as pubs.

Rachel Reeves is being told to help hospitality businesses (Image: Getty)

Rachel Reeves has been warned that she is ruining Britain’s seaside towns. An upcoming increase in business rates is at risk of killing off the traditional coastal holiday as businesses already struggling are hit with heightened expenses, MPs suggest.

The Treasury is understood to be preparing a support package for the pub industry, due to be announced in the coming days, following an outcry over the impact of the major hike in rates. Landlords have begged the Chancellor to “show humanity”. Ministers now face pressure to expand the reported support to other businesses, with trade bodies saying “piecemeal responses” will not “save our high streets”. Opposition politicians have also urged the Government to go further.

Skegness is a classic UK seaside resort (Image: Getty)

Kate Nicholls, chairwoman of UKHospitality, called for “a hospitality-wide solution”, saying the entire industry is affected by business rate hikes, not just pubs. Figures provided by UKHospitality suggest hotels in England face an average increase in business rates of 115% by 2030, compared with a 76% increase for pubs.

Danny Brookes is the owner of Indulgence Ices in Skegness told The Express in March that “a lot of businesses will be cutting down on staff” because of Rachel Reeves’ tax hikes.

He claimed his cafe will be forced to take on fewer staff as a result of the increase in National Insurance payments paid by employers.

The businessman added: “I think the Government are for big businesses rather than small, family-run businesses.

“We don’t seem to get a lot of help from the Government.”

When asked if the Chancellor had caused him personal stress, Mr Brookes said: “Well, I take it in my stride.

“We just have to look at how we’re going to balance the books, and this year is going to be one or two less staff.

“The summer is always important for us on the coas. It’s crucial,” he added, “and the problem is if loads of other people are feeling the pinch and not employing the staff, there’s less money for the staff to spend in the local economy”.

Devon’s south coast is a popular destination (Image: Getty)

Now, Liberal Democrat MP for Torbay, Steve Darling, has emphasised to The Sun that tourism is the “beating heart” of communities on the coast, such as his own.

He added many restaurants and hotels face closure after being “totally neglected” by ministers, and the hospitality industry is still being rocked by Ms Reeves’ increase to national insurance contributions for employers.

“Sky high” energy bills are also adding to the burden.

Mr Darling said: “Many will be worried sick hearing they’re to be slapped with even higher business rates.”

He said the Government needs to “urgently reconsider this ill-thought through hike, or risk this being the final nail in the coffin for the Great British seaside holiday and the hotels and restaurants that make it”.

Alison Griffiths, Conservative MP for Bognor Regis and Littlehampton said the owner of the Navigator Hotel in Bognor Regis told her she had been enduring “sleepless nights and endless worries” over the “onslaught of new taxes and red tape”.

“Her business shouldn’t pay the price for this Government’s incompetence,” she said, The Mail reported.