People living in a costal town, dubbed Chelsea-on-Sea, fear tourists taxes on second home owners and holidaymakers threatens its future.

Salcombe in Devon has long been a popular bolthole for wealthy city dwellers looking for a seaside break.

However, business owners are worried taxes imposed by the council on second home owners and tourists will drive people away from visiting which could be detrimental for the town as it relies on tourism.

Some say they have already started to see the impact, reporting a much quieter Easter holiday season compared to years previous.

Owners of second homes - which make up around 60 per cent of the properties in the picturesque town - are already charged double council tax.