CAMPAIGNERS claim cutting VAT on tourist attractions and hotel stays could create more than 10,000 jobs in Scotland and boost the economy by hundreds of millions of pounds.

The Cut Tourism VAT campaign, which has cross-party support from nearly 100 MPs, is calling on Chancellor George Osborne to announce a tax cut in next month's Autumn Statement.

They claim lowering VAT on the tourist sector from 20 per cent to five per cent could create 11,000 posts and generate an additional £346 million for the industry.

Last month the Scottish Chamber Of Commerce joined a growing chorus of business voices demanding a VAT cut on accommodation and attractions. Chief executive Liz Cameron said it was "important Scotland builds upon the successes the tourism industry has experienced in 2014 and this may be an opportune time for the UK Government to consider reducing the rate of VAT".

Campaigners said research showed lowering VAT for the tourist sector would have an immediate positive impact on the economy.

They said it would also provide a jobs boost for young people, with 44 per cent of those employed in hospitality and tourism under 30, compared to the national average of 24 per cent.

The campaign's research indicated a VAT cut across the whole of the UK would create 120,000 jobs, boost GDP by £4 billion each year, and increase the tax revenues by £4bn over the next 10 years.

It would also bring the UK into line with much of Europe, with only Denmark, Lithuania and Slovakia not refusing to reduce VAT rate for some form of tourism.

Campaigner David Bridgford, strategy director at Merlin Entertainment, said: "The Chancellor should do the right thing and cut tourism VAT to the same level as other European nations.

"The current rate of 20 per cent makes Britain uncompetitive internationally, punishes Britain's tourism sector, which is losing market share to rivals, and penalises Britons who want to holiday at home by making it more expensive than going abroad.

"A cut to five per cent would create 120,000 jobs, boost GDP, attract more international visitors, and give Brits a greater incentive to holiday in the UK."

Dermot King, managing director of Butlins, added: "British tourism is weighed down by a cripplingly high VAT rate that discourages growth and incentivises people to take a trip abroad for their holiday.

"If the Chancellor wants a winning policy for this Autumn Statement, he should cut VAT from 20 per cent to five per cent, and help a great British industry."

Graham Wason, chairman of the Cut Tourism VAT campaign, said: "George Osborne has a fantastic opportunity in the Autumn Statement to unveil a tax cut that would create thousands of jobs, inject millions of pounds into regional economies outside of London, and even result in a fiscal surplus for the Treasury.

"What is more, many of the benefits would be felt as soon as a cut is announced. The Chancellor should listen to MPs, including the dozens in his own party, who are calling for change."

The Treasury did not respond to requests for comment.