We were delighted the Chancellor Rishi Sunak announced that the rise in Vehicle Excise Duty (VED) on new motorhomes would be reversed from 12 March 2020, in his March Budget.
The tax increase of up to 705% had been levied from 1 September 2019 on newly registered motorhomes and campervans fitted with the new generation, greener, more energy-efficient engines.
Earlier this year, we met with our local MP, Holly Lynch (Labour, Halifax), to raise our concerns about these huge increases in Vehicle Excise Duty.
We were worried about the negative impact of this tax increase on the motorhome industry and urged Holly to support the National Caravan Council’s “Fair Motorhome Tax” campaign and to call on Parliament to review the tax in the new budget.
The campaign was backed by 85 cross-party MPs after lobbying by NCC members like us, as well as motorhome manufacturers, such as Swift and Auto-Trail, and motorhome dealerships.
NCC Director General John Lally said: “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.
“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.”
Our Managing Director Ryan Wilby said it was an incredibly important result for our industry and commended the NCC for their effective campaign.