Osborne tax on caravans ‘is crazy’

SHADOW Business Minister Gordon Marsden visited a Hull caravan factory yesterday to hear about the industry’s concerns over plans to extend VAT to classes of caravans previously exempt from the tax.
By The Newsroom
Published 27th Mar 2012, 07:00 BST

According to the Treasury’s own forecast, it is estimated the plans, announced in Chancellor George Osborne’s Budget Statement last week, could lead to a 30 per cent cut in demand for caravans, which the industry claims would threaten 1,000 jobs.

East Yorkshire is the UK’s biggest producer of static caravans and likely to be hit hardest.

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Speaking on a visit to Willerby Holiday Homes, which manufactures and assembles caravans and employs about 700 people, Mr Marsden said: “Everybody in this industry is quite stunned by the way this has been introduced without prior consultation or warning. I have also been talking to the Local Enterprise Partnership and they too are extremely concerned and (LEP chairman) Lord Haskins is going to raise this with (Business Secretary) Vince Cable and (Chief Secretary to the Treasury) Danny Alexander.

“They are shooting themselves and this industry in the foot by this crazy tax.”

Company chief executive Jim Meredith said the levy would impact on the entire supply chain, including British holiday parks and the domestic tourism industry and called for proper consultation and an independent review.

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