The Lib Dems are the first to call for a cut in the VAT rate on domestic tourism.

This of course would boost the tourism industry by generating an expected £4b of extra revenue as well as creating an extra 123,000 jobs in the hospitality sector.

By cutting the VAT rate from 20% to 5% Britain would be more in line with other EU countries which have already lowered their VAT rate.

Dermot King, chairman of the Cut Tourism Vat campaign has said “We hope that the Chancellor will consider making this reduction, as part of the Comprehensive Spending Review now underway.”