As part of the adjournment debate on the “caravan tax”, tabled by Graham Stuart, David asked the following:
I congratulate my hon. Friend on securing this important debate. He has raised the central point. The aim of the Budget was, quite rightly, to encourage growth and jobs and to pay off the deficit. Is it not the case, however, that this particular measure is likely to destroy jobs and raise less money than we already raise? it would therefore meet none of those objectives, and the Treasury ought to retract the measure in total.
Graham Stuart MP responded:
My right hon. Friend is absolutely right.·He and I·have discussed this matter with the·Chancellor, who has spoken to us about it separately on a number of other occasions. We also went in a group of 11 colleagues to see the Exchequer Secretary to the Treasury, my hon. Friend·Mr Gauke. The reason for our only being 11 was that we did not think that there would be room for more around the table; it was not due to lack of interest. There is enormous concern about this issue.I am delighted to say that, when we debated the matter last week, the·Minister·agreed to extend the consultation. The·Chancellor·confirmed that it was a genuine consultation and that the Government would look at the evidence from us and from those out there in the industry—everyone should get involved in that—and would be prepared to look at the matter in the light of the impact that the measure will have.
In recent weeks, local MPs- including David- have been campaigning for the repeal of the tax, which would hit the strong East Yorkshire caravan industry particularly hard.