The controversial move to raise VAT on static caravans from 0% to 20% hit a bump in the road this week when a group of MPs from East Yorkshire launched a bid to overturn the proposal.
George Osborne’s decision to introduce the tax on static caravans has been widely criticised for the damaging effect it will have on the caravan industry and a group of MPs submitted a proposed amendment to the financial bill.
Their proposals would have seen static caravans removed from the bill, but despite 17 Conservative MPs voting for their amendment, a majority of 25 was maintained in it the orignal’s favour, the BBC reported.
East Yorkshire has a thriving caravan industry, so it was no surprise that MPs from the region spoke up.
MPs Graham Stuart, David Davis, Alan Johnson, Diana Johnson and Karl Turner all tabled the motion and voted in support of it. The only MP who did not was Greg Knight, who represents the East Yorkshire constituency.
Addressing the House of Commons, Mr Stuart, the MP for Beverley and Holderness, said the tax on static caravans would be hugely damaging for the industry.
“[It would] at best raise £45 million a year while damaging the economy in East Yorkshire and damaging rural economies across the UK,” the BBC quoted.
Under the Chancellor’s proposals, static caravans would go from being zero-rated to being charged the full 20% rate of VAT, as of October 1st 2012. This move would not affect touring caravans that measure less than 7m in length, since they already incur 20% VAT, but it could affect the new Bailey Retreat range of leisure homes, as CaravanTimes reported last month.
A petition to overtun this move has been set up on the government’s website. If you’d like to sign it you can access it here.
