SIGN THE E-PETITION TO HELP STOP 20% VAT ON CARAVAN HOLIDAY HOMES

 Sign the petition here: http://epetitions.direct.gov.uk/petitions/32781?dm_i=WP7,RZ5X,4I2LEN,29Q85,1

See the BBC report here: http://www.bbc.co.uk/news/business-17769636?dm_i=WP7,S01T,4I2LEN,29SNM,1

We ask for your support for the Caravan Industry over the decision made, without any Industry consultation whatsoever, to put VAT onto the sale of holiday caravans. 

It is very clear that the Government has no idea of the size of the Caravan Holiday Home Industry and its supply chain of businesses that will be affected should this increase take effect.  It is also clear that it has no idea of what caravan holiday homes actually are!  Unlike touring caravans, caravan holiday homes are second homes, just like their bricks and mortar counterparts of cottages and lodges are.  They don’t move, they aren’t towed behind a car.    They are sited on a holiday park with all services and used just as a cottage in the Lakes or Cotswolds would be by families as a second home.

A forecast is given that ‘a fall in demand of about 30% if the VAT is passed onto the customer’.  Despite this, HMRC, states the ‘overall macroeconomic impacts are expected to be negligible’.  HMRC anticipates ‘up to around 750 manufacturers, retailers and holiday parks selling static caravans will be affected by this measure’.  Just to prove how ‘out of touch’ HMRC is, just one of the Industry associations, British Holiday & Home Park Association, shows their members manage 1,156 businesses selling holiday caravans onto 1,627 parks.  Since BH&HPA membership comprises only 75% of the Industry total, this would imply the measure would impact over 1,500 holiday park businesses with over 2,150 holiday parks selling holiday caravans across the UK.  In addition, jobs within some 500 BRITISH businesses in the Industry’s supply chain would also be jeopardised by the measure, for example distributors, manufacturers of supply parts, etc., when sales come to a screeching halt with the prices becoming not affordable to so many of the potential buyers.

Regarding the local communities of the holiday parks that would be affected, independent economic research shows the direct and indirect spend for each 15 holiday caravan pitches supports one Full time Employment Equivalent job.  There is direct employment on the parks in addition to jobs and businesses sustained indirectly by parks and parks’ customer spend.  Rural and coastal businesses are often sustained by the parks and their customers; local pubs, plumbers, restaurants, tourist attractions, village shops, etc.  If you follow the research through, that means that one full time job will be lost for every 15 vacant, unsold holiday caravans.

This Government is supposed to be trying to make it easier for businesses to invest and create jobs to stimulate the economy.   This is not one of the ways to do it!   It is hard enough to generate sales in the current economy and keep parks running stimulating local businesses without adding 20% across the board to the cost of the product.   It will put a good many of our customers out of our marketplace.  It is also just plain unfair to lob VAT on caravan holiday homes which are second homes to families vs other forms of second homes made from bricks, stone, wood, or other materials which do not attract  VAT.  Whatever the Government projects it may receive from applying VAT to holiday caravans surely cannot justify the strain it will put on an already struggling industry and its supply chain.

Please sign the e-petition to help STOP 20% VATon the sale of caravan holiday homes!

Thank you.