GOVERNMENT plans to charge VAT on the cost of static caravans could be 'catastrophic' for tourism in West Somerset and see jobs lost, industry leaders have warned.

A delegation of bosses from holiday resorts across the region travelled to London this week to lobby against the proposals, which are due to come into force this autumn.

The plans, unveiled earlier this year, would see 20% VAT charged on any caravan which is not used for continuous year-round occupation.

Sue Macey, who runs Porlock Caravan and Camping Park with her family, said: “We're strongly against it because it's going to be very damaging to the industry, both for small parks and large ones.

“It's going to be a huge blow to the tourism business which is a real problem for areas like this that rely on tourism.

"Increasing the VAT on static caravans will make the vehicles themselves more expensive which will put people off buying them.

"A £30,000 caravan could go up to £35,000 and for the average person considering buying one that's quite an increase and enough to put them off.”

She also added that the VAT rise could lead to other costs associated with caravan going up to compensate - including the cost of using caravan parks.

She said: “Parks can't keep absorbing the costs and staff still want to be paid. It's going to have a massive knock-on effect.”

The National Caravan Council has estimated 7,000 jobs could be put at risk by the Government's plans, including caravan production and running holiday parks. The direct cost to British tourism could exceed £120million a year.

Tom Ashton, director of Somerset Tourism Association, said: “Increasing the VAT on static caravans will increase the cost of the homes and could put people off buying them.”