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 said he 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.

Measures set out by the Chancellor include:

- A new £2bn scheme to create thousands of job placements for young people aged between 16-14

- 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

- 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

Simon Fell, MP for Barrow and Furness, welcomed the measures.

He said: “I’m delighted by this package of measures.

"They’ll be a boost to people and businesses across Furness.

“I was promoting our tourism and hospitality industry just last weekend - the VAT cut will be a direct boost to them, while the plan for jobs will help ensure that young people should not have to bear the burden of this crisis.

“Measures to get furloughed workers back into work and support apprenticeships will also be a real boon to our area.”

South Lakes MP 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.”

Vice Chair of Cumbria Tourism, Dan Visser, said: “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.”