Caravan tax: MP Graham Stuart takes debate to Commons
BEVERLEY and Holderness MP Graham Stuart will today warn ministers of the "very deep and widespread concern" over plans into introduce VAT on static caravans.
The Conservative MP will use his adjournment debate in the House of Commons tonight to call on the Treasury to drop the measure, which experts predict could lead to more than 7,000 job losses nationwide.
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Tackling tax: MP Graham Stuart, centre, with, from left, Diana Johnson, Karl Turner, David Davis and Andrew Percy at a recent meeting in Beverley to establish the full impact a tax hike on the caravan industry. Picture: Jerome Ellerby
Mr Stuart's debate comes days after the Government's majority was slashed to just 25 when the issue was taken to a vote – the coalition's smallest majority since the tuition fees vote in 2010.
The Mail understands many backbench MPs gave ministers the "benefit of the doubt" at last week's vote but have threatened to rebel when the issue returns to the Commons in the summer if no compromise has been reached.
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Speaking ahead of the debate, Mr Stuart said: "I shall tell the minister of the very deep and widespread concern held by Liberal Democrat and Conservative MPs, both inside and outside Government, about the impact of this measure on the tourism industry.
"The impact will be felt not only in East Yorkshire, where the majority of the caravan industry is based, but across the whole coastal and holiday park community.
"My primary aim is to explain to the minister that, with such widespread concern, it will not be worth the political pain to pursue the measure, particularly when it will raise such little revenue for Treasury.
"Even by the Government's own estimates, which we think are wrong, we believe that the amount raised will be far outstripped by costs of unemployment."
As exclusively revealed by the Mail earlier this week, the National Caravan Council estimates 4,340 jobs could be cut at holiday parks across the country, on top of the 3,000 jobs at risk at caravan manufacturers and in the supply chain.
The figures are based on the Government's own estimates that the introduction of VAT on static caravans will lead to a 15 per cent retail price hike and could reduce demand by 30 per cent.
The Mail understands the amount raised from the tax will be £40 million a year, but the cost in unemployment will be up to £45 million – meaning the caravan tax would actually lose revenue for the Treasury.
Treasury Secretary David Gauke is expected to respond to Mr Stuart's 30 minute debate.
Comments
by onthedolecom
Thursday, April 26 2012, 9:22PM
“The caravan industry is unique to the area with many skilled people in the area. Lets hope that the industry finds ways of dealing with the issue and that the business adapts to any changes in the market”
by Eeebahgum
Thursday, April 26 2012, 8:01PM
“What's the betting they've sold a hell of a lot more caravans since this story came to light. In fact I'm thinking of buying one myself VAT or no VAT.”
by Defarge
Thursday, April 26 2012, 6:13PM
“Mr Stuart's opposition is all for show, I'm afraid; just a necessary ploy in the game to keep the voters on side.”
by balddick
Thursday, April 26 2012, 2:23PM
“VAT aside, why is when i see that photo i think, Smug Barstewards.”
by AstonomiaSK
Thursday, April 26 2012, 2:13PM
“Are they adding V.A.T. to drive tarmac?”
by GarethC2010
Thursday, April 26 2012, 11:15AM
“@thesnooper. Please give me ONE SINGLE REASON why these luxury goods should have this preferential tax treatment. (I'll give you a headstart - there isn't one)”
by thesnooper
Thursday, April 26 2012, 10:01AM
“@ PJMtigerman
complete nonsense”
by GarethC2010
Thursday, April 26 2012, 9:48AM
“PJM, totally agree. The industry has had this 'appalling loophole' for years and should have been getting it's house in order whilst benefitting from a tax-break which has been given them for their (non-essential / luxury) goods. Every other manufacturing industry has not had this tax loophole and the management of the caravan companies should be taking a look at themselves and not pointing the finger at policticians.”
by PJMtigerman
Thursday, April 26 2012, 9:26AM
“I once worked in an industry where it's products did not have VAT on them. Every year the industry representative body of very many different companies had two or three MPs who used to lobby the government not to put VAT on its products. There is still no VAT on the products. Where the caravan industry has gone wrong is that it is dreadfully organised. They didn't have their house in order. The should have realised as a body what the effects of any budget could have on them. Blame the caravan manufacturers first not the government or local MPs. It is too late now. In typical UK fashion UK businesses are totally disorganised.”
by Piper13
Thursday, April 26 2012, 7:40AM
“Good to see politics put aside for the good of the area”