Tax victory for holiday home owners

The treasury proposals, to scrap tax privileges for holiday home owners, would have affected thousands of self-catering accommodation businesses and created a 20m black hole in the Yorkshire tourist industry putting hundreds of jobs at risk.

It was feared the battle was lost after the controversial tax changes came into force on April 1. But the Government was forced to sacrifice them as it rushed to pass its Finance Bill – effectively implementing last month's Budget – through the House of Commons before the dissolution of parliament.

Dorothy Fairburn, regional director of the Country Land and Business Association, said: "This is such an important boost to the region's economy."

Ena Dent, chair of the Tourism Association of North Yorkshire, said: "We assumed it was a done deal, but this is such a load lifted off all of our minds."