Holiday homes tax threat to Yorkshire attacked

TAX changes which could cost the Yorkshire tourist industry millions of pounds and put hundreds of jobs at risk are "misjudged" and need to be revised, Liberal Democrat leader Nick Clegg has warned.

The proposed 20m raid by the Treasury would see privileges for holiday home owners scrapped, affecting thousands of self-catering accommodation businesses in the region.

The move – set to come into force on April 1 – prompted a storm of criticism from the industry and was condemned last week by the Tories.

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Mr Clegg has also backed the Yorkshire Post campaign Give Tourism a Break, which is demanding the policy be revised.

So far more than 110 MPs have signed a Commons motion calling for the changes be reviewed.

Speaking to an audience of Yorkshire Post readers yesterday, the Sheffield Hallam MP said: "Clearly this needs to be looked at again. I think the Government has totally misjudged its impact. It is clearly not going to do what they said it would. We are actively revisiting that ourselves."

Mr Clegg outlined his vision for the country and explained how he would tackle transport funding and the environment but would not be drawn on which party he would support should there be a hung parliament.

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He said his party had a "passion" for improving the region's rail network and said it could be partly financed by clamping down on foreign lorry drivers who pay little or no tax on British roads by filling up their tanks abroad before they arrive.

British firms not only pay tax on their fuel and vehicles in this country, but then pay motorway tolls in France and Spain as well.

Mr Clegg said by changing that system and easing the burden of tax it would make the system fairer and generate funds for high speed rail, and the improvement of the existing rail network such as the electrification of the Midland Mainline.

He said: "We have got foreign haulage companies tanking up much more cheaply on the other side of the channel and then coming here to use road space for free.

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"And we have got British haulage companies where it works to their great disadvantage in reverse, tanking up here at great expense then having to pay for motorways there.

"There must be some way of creating a level playing field which doesn't disadvantage the British haulage industry but does create over time a pot of money which we can invest in high speed rail."

Mr Clegg also called for the other parties to stop pre-election point scoring in order to form a political consensus on transport.

He said: "Norman Baker, our transport secretary, has actively engaged with the Government announcements – that doesn't mean we agree them all – but we have engaged with it.

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"That was why we were so dismayed when the Conservatives decided that they were not even going to discuss it."

On the environment Mr Clegg did say he was "wholly unpersuaded" by the economic case for nuclear power, conceding that his opinion may not be popular in Sheffield where Sheffield Forgemasters was given an 80m Government loan to build parts for nuclear power stations.

He said: "I am acutely conscious of the fact that the recent announcement suggests it is going to be helpful to Forgemasters – a big employer in Sheffield – but it costs us billions and billions of pounds to subsidise the nuclear industry and I think we could do a lot more effective things with that money."

Main points of leader's arguments

The policy to scrap tax privileges for second home owners is misguided and needs to be looked at again. Revenue should be raised for high speed rail by clamping down on foreign haulage companies using British roads for free.

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Midland Main line train route between Sheffield and London should be electrified.

Doubts over the economic benefits of nuclear power stations. The benefits could be offset by the costs of subsidising them and the money could be invested elsewhere.

Liberal Democrats have beaten back the BNP in Burnley, leaving it "a force barely to be reckoned with".

The Swedish education system's example of a simplified curriculum should be followed by Britain.

Refused to be drawn on which political party he would support should there be a hung parliament.

Regional stock exchanges and regional funds are a way to improve lending.