National Caravan Council 2009 Budget wish list

Thursday, 9 April 2009 12:00 AM

The NCC (National Caravan Council Ltd), the trade association that represents the UK caravan and motorhome industry, has released its 'wish list' for inclusion in the forthcoming Budget.

Top of the list is a national loan guarantee scheme - designed to increase the flow of credit. News that government is discussing a scheme to help companies affected by reductions in their credit insurance with trade credit insurance providers has been welcomed by the NCC. The French government already provides insurance to companies that offer credit to businesses they trade with, when private insurance is withdrawn, thus helping companies to continue trading. The NCC would like to see this emulated in the UK.

The UK tourism industry has a real opportunity to attract new customers this year, both from within the UK and from Europe. If VAT on holiday accommodation was aligned with the European average, which stands at 8%, it would render the UK's caravan parks even more competitively priced, and help to close the gap between inbound and outbound spend in Britain's tourism 'balance of payments'.

In keeping with many other trade bodies and businesses, the NCC would like to see a freeze on business regulation and increased assistance for small business.

The NCC wants to see a rise in skill levels across the industry's workforce, through a strengthening of the commitment to funding for 'bite sized' learning. This is particularly useful, for example, for the diverse training needs on caravan parks, when a whole NVQ is either not practical or appropriate.

Specific to the caravan industry, the NCC would like to see a new caravan scrapping scheme. The NCC suggests a government backed consumer credit of £1,500 against any trade-in of older caravans (units to be scrapped in line with government guidelines). Similar programmes adopted in Germany, France and Italy for the car industry been successful in boosting the new car market. This could potentially boost UK caravan manufacture, which, until the recent downturn, was a British success story. Ninety-five per cent of touring caravans and around 75 per cent of motorhomes on British roads are made here.

Ends

Editors notes:

. The NCC is a not-for-profit organisation that represents caravan, motorhome, caravan holiday home and park home businesses in the UK. It represents approximately 800 outlets.

. The UK caravan industry is estimated to be worth in excess of £6 billion p.a. (sales of new/pre-owned products and holiday spend). It employs more than 90,000 people (including seasonal staff).

. For details of the widening gap of tourism balance of payments between 1987 and 2007 in the UK, see:
http://www.tourismtrade.org.uk/Images/Tourism%20Travel%20Account%20since%201958_tcm12-37683.xls

. For information on the impact of VAT rates, see the Tourism Alliance + BALPPA's report: The Impact of Lower VAT Rates on UK Visitor Attractions & Accommodation.

. Sales and production levels of all four caravan products have shown a dramatic downturn since the highs of 2007. Touring caravans, for example, were down 17 per cent last year -v- 2007 levels. As caravans are 'big ticket' items, a difficult market is predicted through 2009.

Press contact: Louise Wood, NCC Director of Communications, tel: 01252 796064, email: louisew@nationalcaravan.co.uk, mobile: 07887 562333

More information at www.thecaravan.net.

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