The Government is intending to levy 20% VAT on 'static' homes, which have been zero-rated until now. Coming so soon after the BAE Brough redundancies, this could lead to a big rise in Hull area unemployment.
it's stupid. the industry has barely survived the credit crunch and will not survive this. the government wanted to extract some cash. it hasn't done its sums. effect on caravan industry = manufacturers closing down and people out of work. government money in and out: INCOME 20% vat on no more caravan sales = 20% x £0,000,000.00 = £0 EXPENDITURE Hundreds more east riding dolees: 100s x £6k (??) per year NET BENEFIT: negative in every possible way
It is a tax hike that will go ahead because it will not effect the Tory front bench. Can't see any of them considering buying a static caravan.
Without being an expert on this matter, it seems to me that our region is going to take a brutal blow straight to the cock on this one. Things are tough here as it is. It boils my piss that Osborne so nonchalantly passes these things. He either doesn't realise the impact, or doesn't give a ****. Looking at the numerous embarrassments his budget has caused, I suspect he hasn't realised. I don't think he thinks things through. Not north of Watford anyway....oooh I just went there!!
Many Tories have never and never will understand the full implications of unemployment. It can destroy communities and families. It's just a statistic to them and if they want to do something, they wont let it stop them.
I probably naively thought that the caravan makers we had (eg Swift) all made the mobile ones rather than static ones? If you concrete the legs into the ground though, will they become classed as a permanent residence and be taken out of the VAT system and moved into the whole stamp duty level instead? (I doubt any have the value to be involved in it).
its part of an untested, failed economic doctrine which may have successful when children went up chimneys, but i am afraid that a little old hat now
