The removal of a special tax break for holiday lets in the Budget is "a hidden attack" on British tourism, according to the Country Land and Business Association, which represents rural landowners and businesses.

The Treasury this week announced plans to repeal the tax privileges, worth £20m a year, for furnished holiday lets in 2010-11, on the grounds their restriction to British properties may be incompatible with European law. In the meantime it plans to extend the tax treatment to properties throughout Europe at a cost of £15m.