Sir Ashley Fox

I am grateful to my right hon. Friend. The rate that Britain is now paying is higher than at any time over the last 20 years—in fact, it is the highest rate since the last time Labour was in office. Britain’s finances are in a precarious position precisely because Labour is doing what it always does: spending other people’s money like there is no tomorrow. The Government announced a holiday tax in the King’s Speech. This will enable councils to tax holidays taken in this country even more than at present. Most people who take their holiday in Britain are British. They already pay VAT at 20% on their holidays, and Labour wants to tax them further. This will hit local businesses in Burnham-on-Sea, Berrow and Brean in my constituency. Many families who holiday in Somerset are not wealthy. A tax of £2.50 per person per night will take £70 a week away from a family of four. That is money taken out of their pocket that they cannot spend with local businesses. It has been interesting to watch Liberal Democrats in Somerset squirming over their plans for a holiday tax. While their colleagues in Bristol and Bath have welcomed the tax, calling its introduction a victory for Liberal Democrats, those in Somerset do not quite know what to say. No doubt they will make their position clear before next year’s local elections.