Squeeze takes £1.8m out of tourism promotion

The significant cut in funding from regional development agency Yorkshire Forward comes after a battle between the two sides over how big a hit the tourism agency should take.

Welcome to Yorkshire – which is responsible for marketing the region to visitors and boosting the economy – claimed it was threatened with a 40 per cent cut, sparking an angry response and a lobbying campaigning against such a big cut from politicians.

It will now receive 10m next year. That represents a 25 per cent cut from the 13.4m it was contracted to receive, although an earlier round of cuts at Yorkshire Forward had already seen this year's budget scaled back to 11.8m.

Thea Stein, chief executive of Yorkshire Forward, said: "Yorkshire Forward and Welcome to Yorkshire have always shared the same objective. This is to continue the excellent work the organisation has carried out in supporting and developing the visitor economy – a vital component of the region's economic success.

"I am delighted that we have been able to work together in a very challenging funding environment to reach a solution which will achieve this objective in the coming year."

The region's tourism industry is worth almost 7bn, and Yorkshire Forward has invested 30m over the past three years, helping to create 4,000 new jobs.

Funding for next year will go towards high-profile marketing campaigns and developing festivals and events, as well as support for tourism businesses.

Welcome to Yorkshire chief executive Gary Verity added: "We are delighted to be entrusted with continuing the job of promoting Yorkshire and developing tourism.

"We have already seen the impact of investment in high profile marketing, both in terms of increased visitors to the county and in changing perceptions of Yorkshire as a place to visit, work or invest in."