CARAVAN site operators fear for their livelihoods if Government plans go ahead unchecked.

In October the price of static caravans is set to shoot up by 20 per cent when standard VAT will be placed on them for the first time in almost 40 years.

But Mersea operators say the hike could have a devastating effect on their business.

Brett Lord, who runs Waldegraves and Cosways leisure parks, said: “We are really worried about this change.

“The way the market has gone, there has already been quite a drop and as a business owner I know the sales are not going to shoot up by putting VAT on the vans up to 20 per cent.”

Mr Lord also said the change will add an average of £5,000 extra onto each caravan, which he expects to deter customers.