Oral Answers to Questions

Gordon Henderson Excerpts

Tuesday 24th April 2012 Commons Chamber

[Mr Hoban]

Well, the hon. Lady makes an important point about the availability of that information. It was released into the public domain last week, and I will ensure that the appropriate figures are laid in the Library.

[Gordon Henderson (Sittingbourne and Sheppey) (Con)]

11. Whether caravans designed and constructed for continuous occupation will remain zero-rated for VAT purposes under his proposals when used as holiday homes.

[The Exchequer Secretary to the Treasury (Mr David Gauke)]

The Government have proposed a new definition of a zero-rated caravan, based on whether it has been designed and constructed for residential purposes. To achieve that, we have proposed a test, based on British Standard 3632, indicating that the caravan has been designed for continuous, all-year-round occupation. We are consulting on whether additional criteria should be added to ensure that the zero rate applies only to caravans intended for residential use, although I know that my hon. Friend argues that such additional criteria would not be desirable.

[Gordon Henderson]

I am grateful to my hon. Friend for his answer, which demonstrates clearly the need for further consultation. There are 45 holiday caravan parks in Sittingbourne and Sheppey which will be hard hit by the imposition of VAT on static caravans. Will he listen carefully and sympathetically to representations from the holiday industry before making a final decision?

[Mr Gauke]

I can assure my hon. Friend that we will listen carefully and sympathetically to the arguments that are put to us. He, indeed, has already made strong representations on this point, and we have of course extended the consultation period to 18 May, as the Chief Secretary to the Treasury pointed out earlier.