Caroline is at the forefront of a renewed push for a cut in the rate of VAT on tourism, highlighting its potential benefits for the Brighton and Hove tourism industry, which accounts for an estimated 14% of the city’s workforce.

She has signed an Early Day Motion calling for VAT on hotels and attractions to be cut to 5% in a bid to drive investment and jobs locally.

At the end of last year, Caroline wrote to the Treasury calling for the rate of VAT on tourism to be cut from 20% to 5%, arguing that it would create jobs, and end the competitive disadvantage currently facing the UK tourism industry in the European market.  She is also seeking to secure a parliamentary debate on the issue.

The Cut Tourism VAT campaign, which Caroline backs, is initially calling for a reduction for accommodation and attractions.

She said:  “Brighton and Hove has some of the best visitor attractions in the country. Some of these would benefit directly from the proposed VAT cut. The cut would give our local tourism industry a real boost, making a real difference to local businesses and creating jobs for people in Brighton and Hove. 

“It would make it possible for more people to come and stay in the area, and even to stay a little longer. It would also allow more people to enjoy a family holiday at home. Families are struggling and they deserve a break. A reduction in VAT would mean more of us could enjoy a day out in our own brilliant city.

“Popular support for the campaign is growing, and I’m sure many more people in Brighton and Hove will want to get behind it.”

The UK is one of only four countries in the EU with no reduced rate of VAT on tourism.  The others are Slovakia, Lithuania and Denmark.   A 2011 report by Deloitte and Touche found that a 5% reduction in VAT would deliver £2.6 billion in extra revenue to the Treasury over a decade, and create 80,000 jobs over two to three years.

Julia Chanteray, President of the Brighton and Hove Chamber of Commerce, said: "Brighton and Hove Chamber welcome the proposal to reduce VAT on tourism services. We think it would strengthen our vital tourism businesses, help us to create even more interesting, creative things for people to do when they visit Brighton and keep a substantial chunk of our city's economy alive and vibrant."

Soozie Campbell from the Brighton and Hove Tourism Alliance said: “This would make such a noticeable difference to prices that everyone would go out to celebrate. What better way to kick start an economic recovery.”

• To read Caroline’s speech on the issue in Parliament, click here
• For more information on the Cut Tourism VAT campaign, visit: www.cuttourismvat.co.uk
• You can read the Cut Tourism VAT factsheet by clicking here
• You can read the EDM here