Caravans are latest VAT target

18/04/2012

Seasides and amusements will be further hit by the news that the government plans to impose VAT on the sale of static caravans.

The caravan industry believes that 3,000 jobs will be lost as a result when the new tax comes into force in October. Job losses include 1,200 in the caravan manufacturing industry, 1,500 in the supply chain and 416 at caravan parks.

Sand Le Mere Holiday Village, in Tunstall, is in the process of investing £5 million in developing an indoor swimming pool, an entertainment complex and an amusement arcade, as well as new caravan pitches.

Andrew Howe, chief executive of Bridge Leisure, which owns Sand Le Mere, said: “I’m disappointed. We have invested a lot of money in developing the business and then been thrown this hurdle – a big hurdle at that.

“It has also been done without any consultation. It will have a negative impact on a key revenue profit line. In my opinion, the research by the Government is badly flawed.”

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