East Yorkshire MP Greg Knight has welcomed the compromise reached by the Government on proposals to add VAT on the purchase of static holiday caravans.
The Chancellor’s budget had contained proposals to levy VAT at 20% on static holiday caravans from October this year. Following pressure from Mr Knight the consultation process was extended and Mr Knight was then one of a number MPs who presented petitions to the House of Commons calling for a re-think of the plans.
Today it has been announced that the original VAT plans will be scrapped and instead a much reduced rate of just 5% will be levied but not until April of next year.
Welcoming the compromise, Mr Knight said: “This is a sensible plan, it gives the industry time to plan for the changes and the tax is not levied at a job-destroying rate”.
Mr Knight added, “Static holiday caravans are a vital part of the economy in East Yorkshire and provide employment for many. It is refreshing to have a Government who first extended the consultation period as I requested and then during that period listened to the concerns of the industry, and acted accordingly”.