Rises in the fees buyers must pay when getting a new motorhome could have a damaging impact on Hull’s big manufacturers, an MP has warned.
David Davis MP, for Haltemprice and Howden, said changes to vehicle excise duty fees were “totally unacceptable,” and could affect the thousands of people employed by motorhome builders in East Yorkshire.
Motorhome buyers must now pay a registration fee of up to £2,135 when they first buy a model – an increase of over 700 per cent on the previous cost.
Mr Davis hit out at the new fees after a visit to Cottingham-based manufacturer Swift.
Swift Group employs 1,200 people in East Yorkshire, and is one of the biggest hitters in the UK’s motorhome sector.
Mr Davis said: "This change to vehicle excise duty is totally unacceptable and threatens the wellbeing of one of our last great British manufacturing industries.
"That is why the Government must urgently reconsider this excessive increase to vehicle excise duty on new motorhomes. A rise to the cost of registration of more than 700 per cent will lead to reduced demand and associated risk to employment in our supply chain.
“It is clear that motorhomes are derived from commercial vehicles and are not cars so they should not be taxed as such.
"I'm therefore asking the Government to urgently consider the unfair taxation of these popular leisure vehicles and review the policy when the next Finance Bill comes before Parliament."
Motorhomes were previously classed as 'Private/light goods (PLG) vehicles' for excise duty purposes, mainly because they are built using 'commercial goods base vehicle' chassis.
However, from September 1, new EU regulations mean motorhomes with a declared CO2 value will now be taxed at the same level as cars.
The result is that instead of paying £265 of excise duty per year, motorhome buyers will have to pay a first registration fee of up to £2,135.
This represents a 705 per cent increase in the tax paid on new motorhomes. It will also be followed by a fixed annual fee of £465 for a further five years.
Mr Davis said: "It was a pleasure to meet the people working at Swift this afternoon and to see first-hand the contribution they are making to the economy.
"This is an important industry, not just in my constituency of Haltemprice and Howden, but for the wider British economy as well. Swift employs 1,150 people in Cottingham alone.”
Mr Davis has now written to the Chancellor, Sajid Javid, raising his concerns and urging the Treasury to reconsider the change.
