PRN: Why Caravan Tax Could Spell "Last Orders" for Tea Rooms
Why Caravan Tax Could Spell "Last Orders" for Tea Rooms [22-May-2012] AMBLESIDE, England, May 22, 2012 /PRNewswire/ -- Holiday treats such as afternoon tea and cakes could be off the menu next year if the government goes ahead with a proposed new tax regime, a major Lake District holiday park has claimed.
Why Caravan Tax Could Spell "Last Orders" for Tea Rooms
AMBLESIDE, England, May 22, 2012 /PRNewswire/ --
Holiday treats such as afternoon tea and cakes could be off the menu next year if the government goes ahead with a proposed new tax regime, a major Lake District holiday park has claimed.
It says the decision to add 20 percent VAT to the cost of static caravans from this October will threaten the survival of many small rural businesses throughout Britain as visitor numbers fall.
Average caravan prices will increase overnight by around Â£6000 if the proposal goes ahead, claims Henry Wild of the 300-acre Skelwith Fold caravan park in Ambleside.
His warning comes after a period of consultation by the government on its VAT plans ended last Friday (18 May), during which the move was heavily criticised by many MPs from all parties.
Village shops, pubs, tea rooms, visitor attractions and other enterprises will be among the unintended victims of the price hike, believes Mr Wild.
He said that fresh evidence about the damaging impact of the new tax has now been presented to ministers by the holiday parks trade organisation of which he is the regional Cumbria director.
Over Â 400 holiday parks which took part in a survey by the British Holiday and Home Parks Association said that putting VAT on holiday caravans will cause a slump in caravan sales of just over 50 percent - resulting in almost 4000 job losses on parks.
On top of that figure, says Mr Wild, will be the jobs axed by the many other businesses which rely on the tourism trade for their survival, some of which may be forced to close:
"The government has got its figures massively wrong on this one," said Mr Wild.
"At the time of the budget when this measure was announced, the Treasury said they expected that sales of holiday caravans would drop by thirty percent after the new tax was introduced.
"Not only has the new survey now shown to be wrong, but they clearly failed to take into account the knock-on effect which falling caravan sales would have on small rural businesses.
"We have been very encouraged by the strong lobby against the tax which has sprung up since the announcement, and hope the voices of dissent will have been heard and heeded," said Mr Wild.
More press information from Henry Wild on +44(0)7831-394533 or PR consultant Jon Boston on +44(0)1768-895225