Static caravan VAT reduction success welcomed by Rory

Rory welcomes the news this week (beginning May 28) that the Government’s  plans to increase the VAT on static caravans will not go ahead after all.

“I am delighted that I and my colleagues’ efforts have paid off, and that the Chancellor has confirmed that the proposed increase in VAT on static caravans will not, thanks to our vigorous lobbying, go ahead as planned. I have met with various constituents and constituent businesses who would, potentially, have been very negatively affected by this, and expressed to the Chancellor my strong fears for the Cumbrian economy as a result of any such rise.

“With so many of our businesses in Cumbria dependent on the tourism sector, which in our county attracts in the region of 40m visitors each year and is worth over £2bn, this rise would have been disastrous. Cumbria’s 7,250 self-catering units – operated by an estimated 3,897 businesses – would have been affected, as well as the estimated 4,000 static caravans that can be found on 160+ sites, accounting for around a tenth of all self-catering bed spaces. These are a hugely important part of Cumbria’s accommodation mix – the range and choice of this type of accommodation is important, and serves a wide range of demand, particularly important in school holidays for family accommodation. Occupancy rates for this type of accommodation far outstrip those for other forms of self-catering.

“This is a real victory for a significant sector of our economy, and I am very, very pleased with this outcome and applaud those constituents who contacted me and maintained real pressure on this important issue.”