COUNTY Durham business leaders are calling on the chancellor to cut tax on hotel accommodation, to try to help the region's tourist industry get back on its feet.

The Darlington Federation of Small Businesses (FSB) wants Gordon Brown to reduce VAT on hotel accommodation from 17.5 per cent to five per cent in the forthcoming Budget. Branch chairman Peter Troy said the legacy of the foot-and-mouth epidemic was still affecting rural hotels.

He said: "We would like to see VAT lowered on hotel and similar accommodation including holiday lettings, camp sites and caravan parks. "

WIDER LOSSES: Personal injury specialist Claims Direct has warned of wider losses this year, as it announced the delayed launch of its new business model. The group, which last year saw new business falter following adverse publicity and a takeover battle, said yesterday it had launched the new model, but that the number of cases accepted had continued to remain at lower rates than in 2001.

SALES FALL: Photo booth operator Photo-Me International said the need to switch its machines to the euro had affected its continental businesses during December and January. With continued weakness in the UK and Japan and a lack of orders for digital minilabs, Photo-Me said it expected a bottom-line annual loss.

NUMBER ONE: Stiller Sadler Tankers has received the Haulier of the Year accolade from Ineos Chlor Ltd for its service distributing chemicals from the group's manufacturing and storage facilities in the UK.

REVENUE DROP: Media group Scottish Radio Holdings has reported a three per cent drop in revenues for the past six months but said long-term prospects remained attractive.