VAT should be reduced for tourism businesses to help Britain compete with other European destinations, according to Westmorland and Lonsdale MP Tim Farron.

Speaking during a Westminster Hall debate this morning, Mr Farron said a tax cut could boost trade and create jobs.

He has asked the Treasury to bring tax rates into line with other European countries.

Mr Farron said: “The tourism sector in the Lakes and Dales wants to be a higher wage industry and to create more jobs. A VAT cut for this sector would help achieve that.”

Last year, the MP tabled a written question on the subject in the House of Commons.

He asked the Chancellor of the Exchequer 'if he will consider reducing the rate of VAT charged to hotels in the UK for the purposes of enabling them to run their businesses at similar levels of taxation to hotels in other EU countries?'

Mr Farron added: “Local hotels and B&Bs are the backbone of our economy and, I think they need more help and support. I will keep campaigning for extra support for our tourism sector and doing all I can to push for a targeted tax cut.”