The government announced that it was rowing back from its initial proposals- in the recent budget- to levy VAT of 20% on the sale of static caravans, which are overwhelmingly manufactured in East Yorkshire. A rate of 5% will now be levied, and this will not be levied until April 2013, as opposed to October of this year.
David said “the caravan industry is traditionally a cyclical industry, so October and November are when they lay off seasonal staff for the quieter winter period.”
“Had this tax been imposed in October it would have exacerbated that problem and seen hundreds of people laid off at the same time.”
“Five per cent instead of 20 is something the caravan manufacturers will, I believe, accept is a good deal. This a very good outcome for the industry and East Yorkshire.”