Chancellor Rishi Sunak is being called upon to help Hull’s huge caravan industry with lockdown seeing a large part of the sector’s trading season lost.
City MP Karl Turner, supported by colleagues Emma Hardy and Dame Diana Johnson, has written the plea, underlining the potential impact on a sector supporting 20,000 jobs in East Yorkshire.
It comes as manufacturers come to terms with a year that saw revenues slashed as political uncertainty took its toll through 2019, with the public reluctant to part with their cash as Brexit uncertainty dominated.
The letter follows a plea to the Prime Minister calling for the same treatment for caravan sales as cars and homes, both of which have now been granted.
They are now calling for a flexible, sector-specific approach to ending the furlough scheme to allow firms to adapt and adjust to uncertain futures.
Mr Turner (Labour, Hull East), said: “Caravan manufacturing is at the very heart of our regional economy. Coronavirus has taken a terrible toll on people’s lives and livelihoods – this government must now ensure that Hull’s post-pandemic economic recovery is not stopped in its tracks before it gets fully started.
“As a seasonal business, there is a very real threat that if support is not continued, we will see job losses later in the year. We must not see a repeat of what happened to the industry locally after the 2008 crash. I will do absolutely everything that I can to stand up for local businesses and good jobs in our city.”
A full quarter of manufacturing has also been wiped out for many, and while there is optimism that staycations and the ultimate self-catering and hygiene control holiday may prove popular as the economy emerges, getting there is the focus.
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Peter Munk, chief executive of east Hull giant Willerby, said: "In the long-term we believe that our industry will come back stronger than ever. The rise of the static caravan will see growth like never before. That does leave us with some very real and painful short term issues that we need to address.
"The delay to the start of our season will cause a ripple effect throughout the rest of the year and particularly through the winter where holiday parks are shut. Therefore it’s great to see that the Government do understand that static caravans are a very safe option for holidays when it’s deemed to be the right time as we come out of lockdown and secondly that we are a seasonal industry and will need an element of support throughout the winter.
"We are extremely grateful for the support we have received from the Government and particularly our local MPs as well as MPs from across the country, where our suppliers and customers are based."
Across the city, and Cottingham-based Swift, the market leader in the touring category, had already seen profits half ahead of the pandemic, with turnover tumbling almost 10 per cent as consumer confidence took a knock. It has let go fixed term staff in recent months.
Mr Sunak recently pulled off a U-turn for the motorhome industry, which it too serves, reversing a huge hike in vehicle excise duty that threatened the sector, now they too are keen to see more done, putting their voice behind the National Caravan Council, which has welcomed the intervention.
The letter to Chancellor Rishi Sunak:
Dear Chancellor,
As Members of Parliament representing the city of Hull, we are writing to you to request urgent support for the caravan manufacturing industry.
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Contributing £9bn a year to the 海角视频 economy, the industry is heavily concentrated in Hull and East Yorkshire and is responsible for nearly 20,000 jobs in our region alone. As outlined in our letter to the Prime Minister on 20th May 2020, the market for sales is overwhelmingly seasonal. With businesses reliant on trade between March-August, there is a serious risk of collapse without further support for the sector.
Like businesses across the country, caravan manufacturers have benefited from the Government’s economic support measures, including the Job Retention Scheme (furlough) and Business Interruption Loan Scheme. However, their position is unique, being entirely dependent on trade in the leisure and tourism sector but not eligible for sector-specific support.
Following the 2008 financial crash, three out of every ten caravan manufacturers in Hull closed their doors. The economic effects of the coronavirus pandemic may well see a repeat, or worse, with a potentially devastating impact on regional employment, already below the national average.
With caravans set to play a central role in the 海角视频’s post-pandemic leisure and tourism sectors, it is vital that support is extended to those firms that have already missed much of their seasonal trade and now face an uncertain winter. A flexible, sector-focused approach to ending the furlough scheme, that allows manufacturers to respond to market conditions, would allow the industry to come through this crisis.
As stated in our letter to the Prime Minister, livelihoods depend on the survival of this industry, as does the post-pandemic economic recovery of our city. We therefore urge you to consider all proposals to support this essential element of our regional economy and take urgent action. We look forward to your reply.
Yours,
Karl Turner MP
Emma Hardy MP
Dame Diana Johnson MP