Hull caravan firm Willerby Holiday Homes fears 350 job cuts

Almost all British caravans are manufactured in East Yorkshire

Up to 350 jobs could be lost at a caravan manufacturing firm in Hull.

Willerby Holiday Homes has warned staff that about half of its 688-strong workforce could be made redundant.

MP Karl Turner said the firm had issued a 90-day notice as "a precautionary measure if a government plan to impose 20% VAT on static caravans went ahead".

The tax is due to be introduced on 1 October. A petition against the proposal is due to be delivered later to Parliament.

The Labour MP for Hull East, Karl Turner, said: "No individual has actually received a redundancy notice, this is simply the first stage of a procedure.

"This should be an indication that this VAT on static caravans is bonkers. It will decimate the industry. This is just the beginning of what the industry have been telling us."

'Devastating blow'

Every area of the business is affected, including 270 jobs from the factory floor, union UCATT understands.

Rob Morris, acting regional secretary for UCATT Yorkshire, said: "This news is incredibly disappointing and is a devastating blow for the local economy.

"We are still trying to get full details of the decision and we will be representing our members during the redundancy consultation."

The 90-day notice period is due to end on 1 September.

Between last October and April, 90% of staff were working four days a week, the BBC understands.

In a statement, Willerby Holiday Homes said: "We believe that this is a prudent and responsible measure reflecting the current economic environment, proposed VAT changes and consumer confidence levels."

The company said it would "do all in its power to minimise the negative impact of any changes" to its staff.

Mr Turner said more than 1,400 signatures had been collected on a petition against the proposed VAT on static caravans.

"I will be handing in the petition tonight with over 1,400 signatures in east Hull alone," he said. "There will be a further 30 other cross-party MPs handing in similar petitions.

"It is the wrong tax at the wrong time. The government can now see the very real impact of this policy. They still have an opportunity to reconsider this tax and I ask them to do this."

The Treasury had said the VAT addition was fair but it would listen to "concerns".