Exchequer Secretary Simon Clarke has responded to concerns aired by business leaders over the 鈥減oorly judged鈥 new motorhome tax regime.
Hull and Humber Chamber of Commerce chief executive Dr Ian Kelly wrote to the Chancellor of the Exchequer, underlining the impact September鈥檚 staggering 700 per cent hike was having.
Two major manufacturers in the region have already made redundancies as they face up to a 鈥減erfect storm鈥 which includes the fiscal penalty, the demonisation of diesel vehicles and ongoing economic uncertainty as Brexit has dragged out.
Auto-Trail in Grimsby shed 40 jobs before Christmas, with roles also lost as Swift in Hull closed a plant in Sheffield, consolidating in East Yorkshire.
Now the pressure is ramping up for a U-turn on the controversial changes, with a Westminster Hall debate heard in the period between the Chamber鈥檚 letter being sent 鈥 calling for urgent reconsideration 鈥 and a response being received.
Latest Grimsby reads:
Mr Clarke reiterated much of what was said to MPs then, with the VED system being used to encourage the take-up of vehicles with low carbon dioxide emissions, while admitting that 鈥渦ltra-low or zero emissions motorhomes may not be available鈥. He wrote that the 鈥淰ED charge remains a relatively small proportion of the (vehicle鈥檚) cost, typically between one and five per cent of the overall cost鈥 adding: 鈥淚 do recognise your concerns and Government keeps all taxes under review. Any tax changes are considered and announced by the Chancellor as part of the Budget process鈥.
Mr Javid will deliver this Government鈥檚 first Budget on March 11.
David Hooper, external affairs manager for Hull and Humber Chamber of Commerce, said: 鈥淚t was interesting to note that he admits there are no ultra-low or zero emissions motorhomes currently available 鈥 but they鈥檝e introduced the tax anyway. How can purchasers choose a lower emission motorhome if none are manufactured?
鈥淲hile it may only be a small proportion of the cost of buying a motorhome, we still think a 705 per cent increase in VED costs are excessive. We continue to hope the Chancellor will review this tax in the Budget as we asked him to do in our letter to him. We will watch with interest.鈥
