THE LEADER of City of York Council has welcomed infrastructure announcements made in the Budget today.

But he has hit out at the decision not to reduce VAT for the tourism industry.

Coun James Alexander, Labour leader of the council, said: “There are some good things in the budget such as the electrification of the Transpennine route from Manchester to Sheffield. This builds on the Chancellor’s previous announcement of the electrification of the route from Manchester to York. The Government agrees with City of York Council that transport is key to facilitating economic growth and this is why the Labour council has set up an Economic Infrastructure Fund to invest in transport.

“However it is disappointing the Chancellor has not acted upon a request to give a temporary VAT reduction to the hotel and guest house industry that would help York’s tourism economy grow. Furthermore I am disappointed the Chancellor is still pursuing a 5.6 per cent increase in business rates in April.”