Objectors to petition Parliament against VAT plans to change Caravan tax.

Coalition MPs who oppose extending VAT to all caravans are taking the initiative their campaign in regards to the government's plans using a petition to Parliament. This tax will not change any VAT paid on caravan accessories.

Treasury officials estimate the new tax on static caravans will raise £45m.
However, many Conservative and Lib Dem MPs believe it will hit sales and threaten thousands of jobs in the north east and also the south west of England.

The BBC knows that Chancellor George Osborne has pledged to place the alteration to a House of Commons vote.

People had until last Friday to submit opinion of the change, which does not require a change in the law but will go through under what is known as a statutory instrument.

Opponents of the plan - announced in the recent Budget - mounted a significant rebellion when it was initially debated and voted on a few weeks ago. The government's majority fell to 21, its lowest since it came to power.

Treasury minister David Gauke has privately conceded that government projections that 100s of firms could be in danger were inaccurate, and the likely figure is higher, the BBC have been told.
The government believes the tax change closes a loophole and is required to ensure a level playing field in the business. Caravans which are towed behind a vehicle already are liable to VAT. All towing accessories can be purchased from Leisureshopdirect.com.

But Conservative critics of the plan have described it as being "not much gain for a lot of pain". One MP who has met George Osborne and several members of the cabinet who lobbied against the change said: "Whatever way you see it there is no economic gain."

The rebels believe they can mount serious opposition to the plans, with the government facing the growing possibility that it could lose the vote if and when it comes.

Another MP who is involved in working for the campaign to try to force the Treasury to modify its mind has claimed that the measure could open the door to French manufacturers - who they claimed are "sniffing around" for opportunities - if some British firms are hit by the new tax.