Local MP calls for caravan VAT re-think
5:25pm 16th May 2012
Julian Sturdy, MP for York Outer, has signed a parliamentary motion calling for the Chancellor to reconsider the introduction of VAT on static caravans as outlined in the Budget a few weeks ago.
The static caravan industry contributes around £334 million to the UK tourism sector alone. With 7,000 people employed by manufactures and suppliers in addition to the 26,500 employed directly by holiday parks, there is a real concern that the imposition of VAT will hit the sector hard.
Yorkshire is a top destination for static caravan parks and our county benefits from the popularity of caravan holidays. Given, that demand is predicted to fall by 30% should the VAT proposal be implemented, Mr Sturdy has signed EDM 31 which calls on the Chancellor to reject any VAT change in this area.
Speaking after signing the motion, Mr Sturdy said:
“The deep financial problems facing this country as a result of the debt-ridden legacy of the previous Government have left us unable to reduce general VAT.
"However, whenever considering the levying of VAT on previously uncharged sectors, the Government must consider the very real costs associated with decreasing demand, lower sales, smaller production and less employment – any of which could threaten Yorkshire’s vibrant caravan sector should the VAT charge be introduced.”
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