THE BRITISH HOLIDAY & HOME PARKS ASSOCIATION (BH&HPA) is urging the Government to show its support for the parks sector in November’s Budget. It is calling on Government to:
- Rethink Inheritance Tax proposals to save jobs and boost investment in rural and coastal areas
- Rule out regional tourism levies
- Include residential park homes in the National Planning Policy Framework.
The association has written to the chancellor in which it outlines a series of “necessary reforms” to protect the future of its 3,000 park members.
Camping and holiday parks, it says, bring massive benefits to local economies and communities – whilst residential parks provide an important housing provision for thousands of older people.
BH&HPA warns that both sectors are under threat from proposed inheritance tax changes which could force parks to sell up when the business is passed on and the tax becomes due.
The result will lead to the loss of jobs and tourism income in the countryside and coastal areas where holiday parks are largely based.
It points to a recent independent report by CBI Economics which shows that the impact of the changes on the parks industry will cost the economy more than £130m and lead to 3,000 jobs being axed.
The report also reveals that many parks are already taking steps to mitigate the threats posed by scaling back on recruitment and putting their investment plans on hold,
“It is vital that the government re-examines the business case for this change to Inheritance Tax and considers the true economic impact it will have,” said BH&HPA’s Policy Director Katherine Squires.
“Large numbers of parks are already reconsidering their futures despite offering a popular, much-loved and sustainable way for people to enjoy a UK holiday.
“Parks contribute so much to the social and economic wellbeing of local communities. It would be a tragedy if they were forced to close as an unintended consequence of this change.”
Rule out regional tourism taxes
Ms Squires says the Budget is an opportunity to prevent the competitiveness of holiday parks being eroded by punitive taxation regimes.
It says the sector is already being disadvantaged by having to apply the full rate of VAT to holiday accommodation, unlike many other European countries where a reduced VAT rate is levied.
Adopting a similar policy in the UK, says BH&HPA, would stimulate demand, enable parks to invest more in their businesses, and sustain year-round employment.
Visitor levies, often referred to as “tourism taxes”, also diminish the ability of parks to compete as they make domestic holidays less affordable for working families.
Ms Squires calls on the government in its Budget to rule against the imposition of such levies in order to protect jobs and sustain the contribution of parks to local economies.
Recognise the importance of park homes
BH&HPA also asks the chancellor to use November’s Budget to include residential park homes in the National Planning Policy Framework which sets out the government’s planning policies.
This, it says, would make a positive and significant impact on the ability of residential parks to gain planning consent for introducing new park home developments in the future.
The association points out that around 160,000 people currently live in park homes in England, almost two thirds of whom are aged 60 or over – a fast-growing demographic in the UK.
Park homes cost around 30 percent less than similar sized bricks-and-mortar properties in the same area, are quick to deliver, and can easily be adapted to provide accessibility needs.
Parks support people, planet and places
BH&HPA hopes that the government will take into consideration the enormous contribution which parks make to local communities.
There are many examples, it says, of both residential and holiday parks expending vast amounts of time, energy and money on bringing about beneficial, sustainable change.
They include creating flood defences to protect the wider environment, the launch of a community bus service, and providing local amenities such as post offices.
BH&HPA’s Budget submission also addresses issues which hold back a park’s options to expand or develop new facilities to attract visitors.
The association is especially concerned at the government’s decision to increase the business rates payable by parks which invest in their businesses and grow their rateable value as a consequence.
BH&HPA asks the government to re-examine existing rate relief schemes, and the escalating cost of moving abnormal loads such as holiday caravans and park homes.
Measures to help parks adopt more effective green energy initiatives, and more support for skills training in rural and coastal areas are also put forward.
“This Budget is an excellent opportunity for the government to signal its determination to get fully behind a sector with a success story which goes back over half a century,” said Ms Squires.
“We hope the chancellor will seize the chance to protect holiday and residential parks, and let them continue to make their contribution which helps with the wellbeing of so many.”