Coalition wins Caravan Tax vote despite Tory MPs’ rebellion

The coalition’s majority was cut to just 25 as whips forced through Chancellor George Osborne’s decision to start charging VAT on static holiday caravans.

More than 20 backbench MPs – the majority of them Conservatives – had tabled a motion calling for the new tax to be dropped over concerns it will have a disastrous impact in East Yorkshire, where 90 per cent of the UK’s static caravans are made.

But following an impassioned Commons debate last night, Beverley and Holderness MP Graham Stuart – the Tory backbencher who had previously led the charge against the tax – attempted to have the motion withdrawn at the 11th hour after the Government agreed to extend its consultation period for an extra fortnight.

He was shouted down by Labour MPs and the amendment was put to the vote, with the Government victorious by 287 votes to 267.

Mr Stuart and fellow East Yorkshire Tory David Davis had previously met with Mr Osborne to make the case for dropping the tax.

Mr Stuart said: “The Chancellor listened and seemed to understand the serious threat the proposal poses for the East Yorkshire economy. He promised the consultation was a genuine one.”

But speaking at Prime Minister’s Questions yesterday afternoon, David Cameron made clear his support for the measure, saying: “This is an issue about drawing the VAT boundaries fairly.

“I do not think it is fair that VAT is payable on a mobile caravan, but not on a stationary one.

“This is about a fair drawing of the boundaries, to ensure there is a fair approach in our country.”