Relegation-threatened Stafford Rangers inflicted a third defeat in a row on the Seasiders, in the West Midlands, on Saturday.
Town conceded on 13 minutes and were unable to hit back.
They now can't make the play-offs in NPL Premier with four matches remaining.
The Blues have only won five league matches since the turn of the year.
Manager Nathan Haslam told Whitby Town TV, his side didn't create enough:
The Seasiders are back in action on Saturday against champions-elect Radcliffe.
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Councillors in the East Riding have expressed a mixture of shock and outrage following the government's "fairer funding review," a provisional settlement that local leaders claim will leave the authority as one of the most financially vulnerable in the country.
Boro chair Trevor Bull says finishing in the playoffs would be a great result after a season of turmoil.
East Riding Council is embarking on a significant organisational overhaul that will include workforce reductions as the local authority grapples with what leaders describe as a "structural" funding crisis.
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