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Caravan Tax: Budget rebels set up petition to scrap VAT rise

Diana Johnson, Labour MP for Hull North, has put forward an official Commons petition to scrap the caravan tax

by Tom Lowenstein and Chris Jefferies

The uproar caused by the Government’s decision to impose VAT on caravans shows no sign of dying down and now an MP has launched a cross-party petition against the policy in the House of Commons.

Diana Johnson, the Labour MP for Hull North, announced on Saturday (April 28th) that she was launching the petition against a policy she believes will damage jobs and put the successful caravan industry in jeopardy.

She says that it could potentially mean thousands of people will lose their jobs from the caravan industry, which employs many hundreds of people in East Yorkshire alone.

In a show of solidarity, Ms Johnson was supported by Hull East MP and former deputy prime minister Lord Prescott, as well as Hull West MP Alan Johnson and Karl Turner, MP for Hull East.

“We’re asking Hull people to get behind caravan workers and their fight for local jobs,” she said.

“This Commons petition against the caravan tax is part of our cross-party campaign, using every means at our disposal, to persuade Ministers to withdraw this unfair and destructive tax.”

However, even if the Government refuses to withdraw the tax, Ms Johnson believes that, because it was voted in by such a small majority of MPs, it could be thrown out if as few as 15 politicians change their minds and vote against it.

“It needs to be stopped as soon as possible,” Ms Johnson added.

How will the caravan tax affect tourers?

The proposed rise from 0% to 20% VAT would affect all static caravans, as well as the Bailey Retreat range of leisure homes and the Welsh-made Fifth Wheel touring caravans – as we reported on CaravanTimes earlier this week.

The National Caravan Council, the body that represents the UK caravan industry, has estimated that 7,000 jobs could be put at risk by the Government’s plans, both in caravan production and running holiday parks, while the direct cost to British tourism could exceed £120million per year.

John Lally, Director General of the NCC, said: “If people don’t buy caravans, a whole chain reaction is put in place and without a doubt holiday destinations across the country will feel the pain.”

To sign the petition online and lend your support to the caravan industry, click here.