IF you're growing tired of your busy London lifestyle then you could visit Somerset, says Chancellor Philip Hammond. 

But that urge isn't enough to make him want to cut tourism VAT rates. 

Campaigners have called on Mr Hammond to reduce the standard 20 percent rate of VAT on services supplied to tourists to 5 per cent at next week's Budget.

They argue it could create thousands of jobs and boost trade.

But the Chancellor has signalled he is not planning to cut tourism VAT rates.

He said such a move could cost up to £10 billion, telling MPs the cash is needed for public services and to deal with the UK's deficit.

Speaking in the Commons, Conservative David Warburton (Somerton and Frome) said: "In the past year, international tourist rates and spend grew faster in the south west than London, and the south west also attracted more domestic tourists than any other region.

"Given the mayor of London's plans for a hotel levy, will you look again at cutting the rates of VAT on tourism?"

Mr Hammond replied: "I agree when a man is tired of London, he could visit Somerset.

"But I have to say to you that while tourism growth across the UK is indeed very welcome, and the Government will look at all opportunities to support it, reducing VAT as you have suggested would cost up to £10 billion, money which is needed to underpin our public services and help to deal with our deficit."