Static Caravans (VAT)

Debate between Graham Stuart and Heather Wheeler

Thursday 26th April 2012 Commons Chamber

[Mr Stuart]

My hon. Friend is absolutely right, and I shall address that point in my speech.

I ran a street surgery in Withernsea, a coastal town in my constituency, on Saturday. As I stood talking to people and handing out leaflets, perhaps as many as three out of 10 people said to me, “I’m not from round here, mate.” They were not staying in bed and breakfasts or hotels, because we have hardly any in the area; they were staying in static caravans. Two or three out of every 10 people going into Aldi, or into the bakery down the road, or spending money in the pubs were staying in static caravans. In addition to those directly employed in the manufacture of the caravans and in addition to the parks, however important they all are, the importance of visitors to the rural economy is immense. That is why there has been such a groundswell of feeling that this issue should be reconsidered.

[Heather Wheeler (South Derbyshire) (Con)]

I have two firms in South Derbyshire that are particularly concerned about the new tax. One is Mercia Marina, and the other is Truma, which makes fittings for static and other caravans. They both believe that 20% of their business could be wiped out overnight, should the tax come into force. Would the Treasury be kind enough to look again at the cost-benefit analysis for this measure? It will find that wider areas, including tourism and jobs, will be greatly affected.

[Mr Stuart]

My hon. Friend is absolutely right.

I have good news, as I am sure the Minister will confirm later, in that the Government have listened to us. Hon. Friends on both sides of the House who represent East Yorkshire constituencies came together immediately after the Budget and we met the manufacturers. What we heard from them was chilling. The industry employs thousands in the manufacturing sector and tens of thousands in the parks. The Government estimate a 30% drop in demand, and that can only mean that thousands of jobs will be lost and that an industry that is struggling to recover from the credit crunch will be knocked backwards.