West Lancashire MP Rosie Cooper has joined with the National Caravan Council to oppose the Vehicle Excise Duty (VED) on Motorhomes.
Due to a technicality under EU emission regulations, new motorhomes will no longer be taxed as Private/Light Goods Vehicles (PLG/PHG) but instead as a car for the purposes of VED.
New owners now face up to a 705% increase, rising from £265 to £2,135 with significantly higher ongoing yearly tax costs for a further five years.
Rosie Cooper MP has called on the Treasury to reclassify motorhomes as commercial vehicles for the purposes of VED at the next budget. She said:
“The impact this drastic increase in tax will have on the motorhome industry is huge, from discouraging people from buying them and the knock-on effects for jobs in sales and manufacturing, to the reduction in users contributing to tourism around the country.
“I have called on the Chancellor to look at this recent change and make provision in the upcoming budget to allow for motorhomes to be taxed as previously and support the motorhome industry.”
NCC Director General, John Lally, said following Questions in Parliament:
“Minister, Simon Clarke MP, recognised the concerns of the motorhome industry, saying VED ‘remains under review’, with any announcements for change to be made at the new Budget (11 March 2020). The Treasury Minister has also agreed to meet again with MPs and the NCC.
“NCC will continue to press the Chancellor to stop taxing new motorhomes and campervans as cars. These vehicles are not cars and should not be taxed as such. We urge the Chancellor to make this urgent amendment to the VED taxation bands in the forthcoming Budget process.”
According to the UK Caravan and Camping Alliance, motorhome and caravan owners make a key contribution to the economy in onsite and off-site spend, helping to bring the value of this sector of domestic tourism to a total worth of £9.3bn.