LABOUR MPs last night criticised the Government for cutting spending aimed at promoting the North-East as a major tourist destination.

Development agency One North East had applied for an exemption so it could go ahead with an advertising campaign over the autumn and winter.

But the Department for Business Innovation and Skills – which has frozen public sector advertising and marketing spending above the value of £25,000 – rejected the plea.

It means One North East cannot continue the TV and newspaper advertising for its Passionate People, Passionate Places campaign, promoting the area.

The agency estimates tourism generates £4bn a year for the North-East economy and supports tens of thousands of jobs.

The decision also places a huge question mark over future tourism spending, with One North East – due to be scrapped by 2012 – unable to make spending commitments beyond the end of this financial year.

Last night, Middlesbrough South and East Cleveland MP Tom Blenkinsop said: “This decision is a huge blow to the tourism industry in the region and comes at a really bad time.

“The autumn campaigns are crucial to sustaining the tourism sector after the busy summer period.

To defend this decision as a necessary money-saving cut is completely missing the point, as it brought significant revenue to the tourist industry in our region.”

Mr Blenkinsop said that without such support from One North East, events such as this weekend’s Tall Ships Race in Hartlepool – which it estimates will bring £16m into the regional economy – may be unable to take place in the future.

Stockton North MP Alex Cunningham said: “It is critical to the future of our tourism industry that the area is properly and regularly promoted.”

A spokeswoman for One North East called the decision disappointing.

A Government spokesman said: “Ministers have been clear that their first priority is to tackle the budget deficit.

“All new contracts for the supply of any Government advertising and marketing services over £25,000 in value will be procured only through approved Government frameworks.”