THE latest budget announcement to cut VAT for six months has been welcomed as “a step in the right direction” by Cumbria Tourism.

But South Lakes MP Tim Farron believes more needs to be done to secure jobs.

Cumbria’s hospitality and tourism sector is one key area which should be given a helping hand by the todays Summer Economic Update, dubbed a ‘mini-budget’, with the Chancellor of the Exchequer Rishi Sunak announcing a six-month VAT cut from 20 per cent to five per cent for six months.

But despite the budget including more than £8bn of new capital to stimulate and help rebuild the economy.

Measures set out by the Chancellor include:

- A new £2bn scheme to create thousands of job placements for young people aged between 16-14 called ‘Kickstarts’, to get unemployed people into work.

- A temporary change to stamp duty - immediately increasing the threshold from £125,000 to £500,000

- Temporary cut to VAT on food, accommodation and attractions from 20 per cent to 5 per cent is announced

- A new job retention bonus for employers who bring back furloughed staff, giving £1,000 to businesses who bring back employees from furlough

- New payments for businesses hiring apprentices and trainees

- A £2bn “green homes grant” to help make homes more energy efficient

- “Eat out to help out” vouchers that will give diners 50 per cent off their meals out at cafes, restaurants and pubs, with conditions, for August

Tim Farron said: “These proposals, particularly the big cut in VAT, are really welcome, and show that the Chancellor has been listening to our case for further support for one of the hardest hit sectors.

“Sadly, however, the measures do not go far enough to form a proper rescue package that is desperately required to save many local jobs and businesses.

“Extended grants for businesses and wage support is needed to help the industry make it through Winter, and I will continue to campaign alongside Cumbria Tourism for that.

“It was also disappointing to see nothing in this statement for all those people, such as recently self-employed people and directors of small limited companies, who have missed out on any Government support during this crisis.”

Mr Sunak notably said he will “make no apology” for winding down the government’s furlough scheme for subsidising worker wages but that the treasury remains committed to protecting jobs - including through the jobs bonus scheme he also announced.

Vice Chair of Cumbria Tourism, Dan Visser, said: “Cumbria Tourism has been lobbying hard to secure a winter package and listened keenly to today’s announcement.

“Our businesses have been working very hard behind the scenes to be able to re-open in a Covid-secure manner, with many of them qualifying to display the ‘We’re Good to Go’ quality stamp by VisitEngland, which means they have met the criteria to responsibly welcome visitors back.

“This afternoon’s announcements offer a series of positive initiatives and I am hopeful that the VAT and voucher announcements will result in increased demand for food, accommodation and attraction providers, which should be a real boost for our sector. We hope to see these moves stimulate demand and build on the good work that has been done by businesses already.”

Cumbria Tourism’s managing director Gill Haigh said: “Although the past weekend has gone reasonably well for the sector, overall demand hasn’t been anywhere near where we need it to be at this time of year. While some businesses have reported encouraging signs in recent days, there are many others which say the number of visitors is still a long way from where it needs to be.”