The Petition of residents of Beverley and Holderness Constituency,

Declares that the Petitioners believe that levying VAT on static holiday caravans would cost thousands of jobs in caravan manufacturing, from their suppliers, and in the wider UK holiday industry; and notes that the Petitioners believe that such a levy would lose revenue for the Government.

The Petitioners therefore request that the House of Commons urges the Government to reverse its decision to levy VAT on static caravans.

And the Petitioners remain, etc.—[Presented by Mr Graham Stuart, Official Report, 22 May 2012; Vol. 545, c. 1097.]

[P001027]

Petitions in the same terms were presented by the right hon. Member for Berwick-upon-Tweed (Sir Alan Beith) [P001095] and [P001028]; the right hon. Member for Coatbridge, Chryston and Bellshill (Mr Clarke) [P001057]; the hon. Member for Suffolk Coastal (Dr Coffey) [P001059]; the hon. Member for Thirsk and Malton (Miss McIntosh) [P001094]; the hon. Member for Brigg and Goole (Andrew Percy) [P001029]; the hon. Member for Kettering (Mr Hollobone) [P001030]; the hon. Member for Wigan (Lisa Nandy) [P001031]; the hon. Member for Waveney (Peter Aldous) [P001032]; the right hon. Member for Kingston upon Hull West and Hessle (Alan Johnson) [P001033]; the hon. Member for South Thanet (Laura Sandys) [P001034]; the hon. Member for Gower (Martin Caton) [P001035]; the hon. Member for Wyre Forest (Mark Garnier) [P001036]; the hon. Member for Wellingborough (Mr Bone) [P001037]; the hon. Member for Maldon (Mr Whittingdale) [P001038]; the right hon. Member for Haltemprice and Howden (Mr Davis) [P001039]; the right hon. Member for Delyn (Mr Hanson) [P001040]; the hon. Member for Dewsbury (Simon Reevell) [P001041]; the hon. Member for Kingston upon Hull East (Karl Turner) [P001042]; the hon. Member for Argyll and Bute (Mr Reid) [P001043]; the hon. Member for Kingston upon Hull North (Diana Johnson) [P001044]; the hon. Member for Ayr, Carrick and Cumnock (Sandra Osborne) [P001045]; the hon. Member for Isle of Wight (Mr Turner) [P001047]; the hon. Member for North Antrim (Ian Paisley) [P001048]; the right hon. Member for East Yorkshire (Mr Knight) [P001049]; the right hon. Member for Wentworth and Dearne (John Healey) [P001050]; the hon. Member for Ceredigion (Mr Williams) [P001051]; the hon. Member for Carmarthen West and South Pembrokeshire (Simon Hart) [P001052]; [P001053] and [P001054]; the hon. Member for Hastings and Rye (Amber Rudd) [P001055]; the hon. Member for Cleethorpes (Martin Vickers) [P001056]; the hon. Member for St Ives (Andrew George) [P001058]; the hon. Member for Beverley and Holderness (Mr Stuart) [P001060]; [P001061]; [P001062]; [P001063]; [P001064]; [P001065]; [P001066]; [P001067]; [P001068]; [P001069]; [P001070]; [P001071]; [P001072]; [P001073]; [P001074]; [P001075]; [P001076]; [P001077]; [P001078]; [P001079]; [P001080]; [P001081]; [P001082]; [P001083]; [P001084]; [P001085]; [P001086]; [P001087]; [P001088]; [P001090]; [P001091]; [P001092]; [P001093]; and the hon. Member for Selby and Ainsty (Nigel Adams) [P001089].

Observations from the Chancellor of the Exchequer, Treasury:

The Government thank the Member for Beverley and Holderness (Mr Stuart) and all other MPs who submitted petitions on the Government proposal to levy VAT at the standard rate on static caravans.

On Budget day we published a consultation on application of the standard rate of VAT to static caravans, with a view to correcting anomalies in the VAT system. The consultation closed on 18 May.

Having listened to responses to the consultation we propose to tackle the inconsistent treatment of caravans in a different way.

As a pragmatic response, rather than have a single dividing line between a zero rate of VAT on permanent residences and 20% on static holiday caravans, we announced that the Government will introduce VAT on static holiday caravans and large touring caravans at the reduced rate of 5%. Static residential caravans (those that meet the BS3632 standard) will remain zero rated as per the Budget proposal. This pragmatic approach was added to the Finance Bill at Report Stage on 3 July.