Some companies say they will go under without help

The island can pay out the cash because it is not a member of the European Union.

Ian Stephens, marketing director of the Cumbria Tourist Board, said: "In the same way that farmers have had their animals culled, we have had the number of occupied beds culled.

"We have had no offer of compensation and we have put proposals to the government.

"Hotels in this area have lost between a third and a quarter of their normal level of business.

"The European Union does impose certain restrictions of government help for private businesses but we think there must be a way to help hoteliers.

"We are expecting some businesses to go under after the summer."

Holidaymakers return

Holidaymakers are starting to return to the Lakes but many businesses are still struggling.

Tourism minister Kim Howells, who was visiting the Lake District, said: "It is impossible to match the money being given by the Isle of Man.

"They are not governed by the same European Union rules that say states cannot give unfair aid to the tourist industry.

"But we are looking at every way we can to offer help."