Static Caravans (VAT)

David Davis Excerpts

Thursday 26th April 2012 Commons Chamber

[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.

[Mr David Davis (Haltemprice and Howden) (Con)]

I congratulate my hon. Friend on securing this important debate. He has raised the central point. The aim of the Budget was, quite rightly, to encourage growth and jobs and to pay off the deficit. Is it not the case, however, that this particular measure is likely to destroy jobs and raise less money than we currently raise? It would therefore meet none of those objectives, and the Treasury ought to retract the measure in total.

[Mr Stuart]

My right hon. Friend is absolutely right. He and I have discussed this matter with the Chancellor, who has spoken to us about it separately on a number of other occasions. We also went in a group of 11 colleagues to see the Exchequer Secretary to the Treasury, my hon. Friend the Member for South West Hertfordshire (Mr Gauke). The reason for our only being 11 was that we did not think that there would be room for more around the table; it was not due to lack of interest. There is enormous concern about this issue.

I am delighted to say that, when we debated the matter last week, the Minister agreed to extend the consultation. The Chancellor confirmed that it was a genuine consultation and that the Government would look at the evidence from us and from those out there in the industry—everyone should get involved in that—and would be prepared to look at the matter in the light of the impact that the measure will have.