Graham Stuart, the Member of Parliament for Beverley and Holderness, and a cross-party group of local MPs will be meeting with representatives of the East Yorkshire caravan industry tomorrow to discuss the impact of a proposed VAT increase.
The meeting, which will take place on Thursday in Beverley, was arranged by Graham following the announcement by the Chancellor in the 2012 Budget that from 1 October 2012 VAT would be imposed on a variety of products, including static holiday caravans.
Many of the UK’s largest caravan manufacturers are based in East Yorkshire, employing thousands of people in the industry and related jobs.
Graham said, “The Budget is a Budget for growth with millions taken out of tax altogether and corporation tax being reduced so as to encourage investment by business in the UK. It’s all about creating jobs, not destroying them which is why we are so concerned about the immediate introduction of full 20% VAT on statics from October 1st. What may, in London, look like a fair levelling up could in East Yorkshire be extremely harmful to one of our most successful industries.
“Before I meet with the Chancellor I want to be sure that we have a full understanding of the implications of this change and are in the best position to argue on behalf of local businesses and local jobs. This meeting will help all of us to understand the impact of a VAT increase on business and employment in East Yorkshire.”
He continued, “The whole supply chain for static caravans is based in this country and concentrated in East Yorkshire. The Government has gone out to consultation on its proposals and we will be working cross-party and as one in telling the Government to think again. Thursday’s meeting is just the first step in making sure that we protect the East Yorkshire interest.”
Graham and Haltemprice and Howden MP, David Davis, will be meeting with Chancellor George Osborne when Parliament returns immediately after Easter to press the case for a rethink.
