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30 May 2012, 00:00 | Updated: 30 May 2012, 13:13
Brandon Lewis MP for Great Yarmouth says he is delighted that the Government is changing its tax plans for static caravans.
The proposal would have led to static caravans being charged the full 20% rate of VAT. Campaigners say that this could have resulted in problems for the Caravan Industry, a vital section of the Great Yarmouth tourist industry.
During the consultation period, Brandon Lewis MP along with other colleagues, campaigned for ministers to reduce the amount of tax they were planning to charge. Supported by local Caravan Parks, the campaign focused on highlighting the damage which could be caused by this proposal.
The campaign also received support from local businesses and the New Anglia Local Enterprise Partnership (LEP) as well as the Great Yarmouth Tourism Authority, and Brandon Lewis MP believes this helped to persuade the Ministers that they needed to find a different option for the industry. They have now announced that the VAT rate level will be only 5%. This will be come into force April 2013.
Brandon Lewis MP said “It is important that the Government is open to considering every option available to them in order to cut the deficit, however this idea would have had serious knock on consequences. Imposing the full rate of VAT on Static Caravans would cause serious damage to one of the cornerstones of the Great Yarmouth economy.
"I am delighted that the Ministers, after constructive lobbying have decided on a new course of action. This decision shows that the Government does listen, and I would like to thank everyone involved in the campaign-from park owners through to concerned residents, for supporting me in this cause. This new fair proposal will ensure that jobs and holidays are protected not only in our Borough but across Norfolk and the wider country.”