The Liberal Democrats have reignited calls to reverse the cuts to VisitBritain's budget in light of the country facing a recession.

The UK's tourism body lost 40 per cent of its London-based employees and a similar amount of it overseas staff when the government cut is budget by 18 per cent last year.

Lord Clement-Jones, spokesperson for the Liberal Democrat Culture, Media and Sport, raised the issue yesterday in the House of Lords. He claimed it was "extraordinary" at a time when in-bound tourism had heavily dropped that the government has cut the budget of VisitBritain and tourism promotion.

He said: "Small and medium-sized companies – which the government claims to be keen to help through this recession – make up 90 per cent of the tourism sector.

"Will the goverment at last acknowledge that the budget for VisitBritain's activities must be increased if this vital sector of the economy and the small businesses within it are to survive and prosper?"

VisitBritain is planning to consolidate and refocus its global marketing efforts and customer service to the internet, starting with the closure of its walk-in national tourist office in New York, US.

According to the tourism body, 98 per cent of its global customer business was conducted online this year compared to 40 per cent eight years ago. And each month nearly 250,000 visitors turn to the agency's website for special discount packages, suggested itineraries, restaurants and attractions.

VisitBritain executive vice president and regional director of The Americas Rupert Peters, said: "VisitBritain prides itself on delivering high quality marketing and customer service in the US. This change will enable us to focus more resources online, where the vast majority of our customers are and expands into new areas such as social media."

Staff at both the New York and Los Angeles office will continue to run its marketing programmes with the organisation's travel trade and media relations department.