Fears spread for job losses over VAT plan for static caravans

Tory Pudsey MP Stuart Andrew told the Commons that one manufacturer, Ellbee, based in his constituency, “will almost inevitably have to close” if the Treasury pushes ahead with plans to start charging VAT on the sale of static holiday caravans.

More than 90 per cent of static caravans are made in East Yorkshire and attention has so far focused on the impact on that area.

But Mr Andrew said Ellbee – which has 250 employees and makes a range of parts for caravans – would be hit just as hard.

He said: “Ellbee saw the downturn coming and made the difficult decisions at the time to lay people off, going right down to the bare knuckle. With this proposal, the company will almost inevitably have to close. That will mean the loss of more jobs in an area that can ill afford to lose them.”

Mr Andrew’s party colleague Craig Whittaker, the MP for Calder Valley, said there would be knock-on effects for firms in his local area as well.

“BCA Leisure is a large company in the Calder valley,“ he said. “It produces parts that supply the caravan trade.

“The chief executive officer tells me that the proposed measure will deal a huge blow to his company and to other employers in the Calder valley.”

The Government’s consultation on the new tax runs until May 18. Both companies have declined to comment so far.