200 caravan jobs axed

CARAVAN manufacturer Willerby Holiday Homes says it is shedding nearly 200 jobs – weeks after the Government announced it was cutting back on a controversial new tax after coming under intense pressure from MPs and the industry.

The Hull-based firm said 193 jobs would go from September, around a quarter of its workforce. It had warned as many as 350 jobs could go, and blamed the economic crisis and the decision to impose five per cent VAT on static caravans, although it is far less than the 20 per cent originally proposed.

Hull North MP Diana Johnson said it was why she had been pressing Ministers on the impact of the increase.