West Midlands parks call for Budget reforms to secure sector's future

The businesses, mostly family-owned, are among those in membership of the British Holiday and Home Parks Association (BH&HPA) which is making the call.

The association has written to the chancellor to outline a series of "necessary reforms" to protect the future of its 3,000 park members.

In particular, it wants the government to rethink inheritance tax changes to save jobs, and to rule out regional visitor levies, also known as "tourism taxes".

BH&HPA warns that the new inheritance tax measures could force parks to sell up when the business is passed on, and will result in the loss of regional jobs and tourism income.

It points 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 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 its true economic impact," 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."

Ms Squires says the Budget is also an opportunity to prevent the competitiveness of holiday parks being eroded by other 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 maintain year-round employment.

Visitor levies, it states, 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 tourism taxes in order to protect jobs and sustain the contribution of parks to local economies.

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 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 have invested in their enterprises and grown their rateable value as a result.

BH&HPA has also put forward measures to help parks adopt more effective green energy initiatives, and is also asking for more support for skills training in rural and coastal areas.

"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 parks, and let them continue to make their vital contribution to local economies and communities."