Although the government’s decision to reduce static caravan tax from 20 per cent to five per cent has been viewed as a victory for the caravan industry, manufacturer Willerby Holiday Homes has become one of the first firms to see a knock-on effect in its business practices.

As of April 2013, all static caravans and larger touring caravans will be eligible for a five per cent VAT charge at the point of sale. In light of this, many companies are predicting a downturn in sales, which has led Willerby to reduce its workforce from 700 to just over 500 people.

“The reduced level of employee redundancies from the 350 initially estimated in May is a result of the company’s view of its market in the ongoing tough economic climate together with the Government’s decision to limit the increases in VAT from the original 20 per cent proposed,” Willerby revealed in an official statement.

If you’re looking to purchase a caravan before the VAT increase next spring, Coast can offer you a competitive quote on your static caravan insurance or touring caravan insurance. For a no obligation quotation call Freephone 0800 614 849 or click here for an instant online quote.

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