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National Caravan Council and MPs meet to discuss national impact of VAT rise on caravan industry

The NCC (National Caravan Council) met with a cross-party group of local MPs and representatives of key businesses in East Yorkshire last week to discuss the impact of the proposed VAT increase on caravan holiday homes.

The meeting of five MPs, eight representatives of industry and NCC Director General John Lally was arranged following the announcement in the 2012 Budget that from 1 October 2012 VAT at 20 per cent would be imposed on caravan holiday homes (and a variety of other products).

Many of the UK’s largest caravan manufacturers and suppliers are based in East Yorkshire, together employing many thousands of people. However, the NCC believes that the proposed VAT rise will have effects far beyond the Yorkshire manufacturing hub, potentially causing job losses and significant reduction of tourism income across the country.

The attendees agreed that, prior to MPs meeting with Chancellor George Osborne when Parliament returns after Easter, firm opposition was needed across the UK together with a clearer picture of job losses, potential business failures and the cost in lost tourism receipts. Mr Graham Stuart, MP for Beverley and Holderness who hosted the meeting agreed to co-ordinate a cross party national initiative of MP’s opposing Government proposals and intends to call for a debate in Parliament, an Early Day Motion and to set up a Parliamentary petition.

The NCC is calling upon the caravan industry, associated businesses, and the caravanning community concerned about the negative impact this may have on the UK economy to contact their local MP and encourage them to support Graham Stuart’s cross party initiative.

Graham Stuart MP said: ‘We will be working cross-party and as one in telling the Government to think again about the impact this VAT rise will have on East Yorkshire and the caravan industry as a whole.’

The NCC’s John Lally said: ‘This attacks a British manufacturing success story and a British holiday industry that makes a significant contribution to domestic tourism. The industry’s slight recovery at present is fragile; the imposition of VAT will put manufacturing output levels and sales below those at the worst point of the recession with significant economic and social consequences.’

Ends
Editors’ Notes:
Present at the meeting were:
- MPs David Davis, Diana Johnson, Andrew Percy, Graham Stuart, Karl Turner, plus a representative from
Alan Johnson’s office, Hull City Council and East Riding of Yorkshire Council.
- Industry representatives from the NCC and ABI, Atlas, Carnaby, Delta, Normandy, Swift, Victory, Willerby
The NCC is the UK trade body for the tourer, motorhome, holiday caravan and park home industries.
Press contact: Jackie Duffy, NCC, mobile: 07833 431568 email: Jackie.d@thencc.org.uk

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