Hanson Backs Caravan Tax U-Turn

Delyn MP David Hanson has welcomed a partial u-turn from the Government on their proposals to slap VAT on static caravans. Ministers have set out revised plans to charge 5% VAT on static caravans, rather than the 20% originally proposed.

The Flintshire MP has slammed the Government for the chaotic way in which it has conducted itself since the Budget in March.

David Hanson said:

“Caravan park owners and businesses in Flintshire should be congratulated for taking the fight to the Government over the ill-thought out and shambolic attempt to slap 20% VAT on static caravans.

“Whilst it is encouraging to see Government Ministers relent and change their proposals, we are still going to see a 5% VAT rate from next year, which will add some strain to the sector.

“Last week I submitted a petition with over 1,000 names calling for a reversal of this VAT rise and I have repeatedly called for re-think in the chamber. The Government’s own figures suggested a fall in demand of 30 per cent, if the 20% VAT rate had been implemented – having a devastating impact on jobs.

“Ministers were clearly anxious to avoid a defeat in the House of Commons on Labour's motion next month, after Parliament's last vote on the caravan tax saw the Government's majority slashed to just 25.

“This tax would have caused job losses here in Flintshire and I'm glad the Government have been forced into a u-turn.”