SOUTH Dorset MP Richard Drax thinks lowering tax on tourism is vital for businesses in seaside resorts to thrive.

A group of Conservative MPs will ask Chancellor George Osborne to consider lowering the VAT rate on accommodation and attractions from 20 per cent to five per cent at seaside resorts.

Mr Drax believes the UK should join the majority of Europe in offering lower tax on tourism in order to allow businesses in Dorset to compete with overseas holiday destinations.

He said: “I am completely behind the idea and will continue to put pressure on the government on this issue.

“In a very prime tourist area that we have on the Dorset coast, it would clearly ease the burden on businesses and allow them to thrive.”

Mr Drax would like to see the government listen to the proposals but said he is realistic about the impact lowering the rate would put on the UK’s squeezed economy.

“To be fair to the Chancellor, we are still emerging from a very difficult financial climate,” he said.

“The economy is still very fragile and it is just starting to take off again.

“We will continue to lobby and even if we are not in a position to action this now, it is vital that we get the issue on people’s radars and understand how much of an impact it would make to local businesses.

“In France, a lower rate was introduced to encourage more people to eat out. As far as I am aware it is working over there, so I am hopeful it can make a big difference in Dorset.”

West Dorset MP Oliver Letwin has met with campaigners to discuss the proposals.

Mr Letwin said: “As a coastal MP with a large amount of tourism in my constituency, I am obviously keen to see the steps taken to improve the prospects for British tourism – which is one of the reasons why I have been meeting the promoters of this campaign both locally and nationally.

“However, the UK still has a considerable fiscal deficit and this is not, therefore, a time when the Chancellor can afford to take large fiscal risks.”

Independent research in July found that cutting the VAT rate could create more than 120,000 jobs and add £4 billion to the UK GDP every year – as well as contributing £4 billion to government spending over 10 years. High VAT rates in Britain compared to other European countries can make it expensive for Brits to holiday at home.