NCC wins battle for Fair Motorhome Tax: VED hike reversed in Budget
A statement by the Chancellor, Rishi Sunak, in today’s Budget confirmed that the
rise in Vehicle Excise Duty (VED), which was imposed on new motorhomes, is to
be reversed.
The tax increase of up to 705% had been levied from 1 September 2019 on newly
registered motorhomes fitted with the new generation, greener, more energy
efficient engines.
The trade association for the leisure vehicle industry, the
National Caravan Council (NCC), immediately began its #fairmotorhometax
campaign. By March 2020, the campaigning was backed by 85 cross-party MPs.
NCC Director General, John Lally, said: “We have had extraordinary support from
Parliamentarians – too many to mention them all - but in particular Richard
Holden MP, Sir David Amess MP, Emma Hardy MP, Karl Turner MP and David
Davis MP. Rishi Sunak MP – prior to becoming Chancellor - had also indicated
support.
“Alongside the NCC, its members and the wider industry, these MPs worked
tirelessly to reverse this increase, knowing the impact it would have on British
manufacturing, on jobs and, potentially, on UK tourism. We offer our thanks to all
of them and to the media, who highlighted how unfair the tax was.
“Early in 2019 when the rise was first mooted, the NCC immediately mobilized its
forces. For nearly a year, NCC Deputy Director General Alicia Dunne and the
team have highlighted the issue, met with Treasury, briefed dozens of MPs,
researched possible impacts and liaised with the industry to try to get the rise
reversed. Today, we have got the result we have been working for – a huge boost
for British manufacturing.
“Leisure vehicle manufacturing is a British success story. The steady growth the
motorhome industry had seen up to the time of the tax hike was almost instantly
halted. We are delighted that our new Chancellor has so quickly understood that
motorhomes and campervans should not be taxed as cars, that he has shown
concern about the threats to our industry and taken this action to preserve jobs.
“Motorhomes will now return to being taxed as vans, which is logical as the vast
majority are based on a commercial vehicle chassis. This is an amazing result for
us, for this vibrant manufacturing industry and for the many thousands who take
motorhoming holidays – the vast majority in the UK – each year.”
Erwin Hymer Group UK Ltd, Managing Director, Rob Quine, commented: “Ours is
a highly innovative, inventive and competitive industry, but these tax hikes
threatened its stability. I would like to thank the NCC and our new MP, Richard
Holden, for all they did.”
James Turner Managing Director, Swift Group Ltd said: “This is an incredibly
important result for our industry, it will without doubt resonate with our loyal
customers, which in turn will give all businesses within the entire supply chain
the opportunity and the confidence they need. Our gratitude extends to all those
involved for their support, with special thanks to the NCC and our local MP David
Davis.”
