Mr Todd said:

“The decision by the Tory-Lib Dem government to increase the standard rate of VAT to 20 percent betrays commitments made by both my Conservative and Liberal Democrat opponents at the General Election. The fact that Liberal Democrats campaigned against such an increase has been well-documented. It is also important to remember that the Conservative candidate in Westmorland and Lonsdale gave a “firm commitment” to the South Lakes Federation of Small Businesses (FSB) that VAT would not go up.

“Many of these small businesses will directly or indirectly benefit from the recent opening of K-Village in Kendal, which I championed during the campaign. But these businesses would be in a much stronger position if this decision on VAT had not been made.

“This increase is the last thing our economy needs in its present fragile state. It puts our economic recovery in danger.”

 The “green bank” is the centre-piece of a package of job-creation measures contained in the Budget and will be set up with £1bn from the Treasury, funded by the sale of government assets, and £1bn of private funding.

 Mr Todd said:

“It is thought that 400,000 ‘green jobs’ can be created over the next five years. The green bank is a partnership between the public and private sectors that will unlock this potential. I welcome the launch of a new hydropower turbine, designed by Kendal-based Inter Hydro Technology, at Heron Corn Mill in Beetham over Easter weekend and I hope that the green bank will encourage other local entrepreneurs to make full use of the new opportunities on offer to develop similar initiatives and expand their businesses.”

Labour Chancellor Alistair Darling said:

“This equity will unlock another billion pounds in finance from the private sector. The fund will focus first on investing in green transport and sustainable energy where Britain is already the world leader. It will help the UK secure new inward investment deals, and support thousands of extra jobs in these sectors.”