The news that the Government has back-tracked on its plans to increase VAT on caravan sales has been welcomed by the owners of Newlands Holiday Park near Lyme Regis in West Dorset.
It had been announced in the recent budget that VAT charged on static holiday caravans would be increased to 20% to bring them in line with mobile caravans.
However, after widespread opposition, the government has now decided to limit the VAT rise to just 5 percent. Newlands owner Rex Ireland had previously spoken out against the VAT rise on caravans in the local press, arguing that the price hike was “unjust” and predicting it would harm the local economy in Dorset, which relies heavily on tourism.
It was in the long term that he expected the impact would be most keenly felt. “When somebody buys a caravan on our caravan park, not only do they buy into West Dorset for approximately 15 years or more, but so do their family & friends” He argued that a 20% increase would “drive away potential holiday home buyers from the park, and this will have a knock-on effect on local businesses and tradesmen, as there will consequently be less money coming into the area”.
It has therefore come as a major relief to holiday park owners like Rex that the VAT hike will be revised down to 5%. Newlands are now looking forward to a successful summer, welcoming both regular and first-time guests to their Dorset caravan park and campsite for what is sure to be an eventful and fun-packed season on the Jurassic Coast.
(Picture - Newlands Holiday Park, Dorset)
