Page last updated at 18:11 GMT, Thursday, 26 April 2012 19:11 UK

Adjournment debate

Conservative MP Graham Stuart led an adjournment debate on VAT on static caravans on 26 April 2012.

Chancellor George Osborne announced in this year's Budget that VAT will be charged on the sale of new static caravans from 1 October 2012.

Mr Osborne told MPs it would close a long-standing loophole that has existed since the introduction of VAT in 1973.

The caravan industry has claimed the tax will lead to 2,000 job losses.

Mr Stuart, whose constituency includes a number of caravan parks, said that someone buying a static caravan as a second home would pay "20 times as much tax" as someone buying a cottage as a holiday home.

Fellow Conservative David Davis argued that, as result of this measure, a Budget meant to cut the deficit could end up destroying jobs and damaging the economy.

Treasury Minister David Gauke told MPs that, while he recognised there would be an impact on caravan manufacturers, caravan parks "have a variety of sources of revenue" which will not be affected by the VAT changes.

He suggested that caravan parks had "scope for adaptation" of their businesses.

Graham Stuart was one of 17 Conservative MPs to vote against the tax during the recent passage of the Finance Bill through the Commons, cutting the government's majority to 25.

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