The UK Government has confirmed that British caravan and motorhome manufacturers are eligible to apply for support under its newly announced £2.5 billion DRIVE35 programme.
The ten-year plan, managed by the Department for Business and Trade (DBT), was launched in early August 2025 and is designed to promote zero-emission vehicle production and long-term economic growth across the country.
Although initially framed around the car manufacturing sector, a DBT spokesperson told Out & About Live that leisure vehicle manufacturers, including those producing caravans and motorhomes, are also included in the scheme.
This move could provide a timely boost for UK leisure vehicle businesses amid concerns about the future of domestic holidays.
Business and Trade Secretary Jonathan Reynolds stated, “Economic growth is our number one priority, and by funding our world-leading auto sector, we are creating the right conditions for increased investment, bringing growth, jobs, and opportunities to every part of the UK.”
The inclusion of caravan manufacturers in DRIVE35 follows warnings from tourism advocates about declining domestic holiday figures.
Daniel Attwood, a spokesperson for the Back British Holidays campaign, recently cited figures projecting that the number of domestic holiday trips could fall by 32% between 2022 and 2025, dropping from 42.3 million to 28.8 million.
The cumulative impact could result in an estimated £23.2 billion in lost revenue, affecting tourism-related businesses and employment throughout the UK.
“Our recommendations are that the Government put some support into the sector. Not only financial support, but also infrastructure support, as if these businesses can keep their costs lower, then the charge to guests also becomes lower,” said Attwood.
Back British Holidays, launched by Out & About Live, is advocating for increased government backing and public awareness to revive interest in domestic travel.
The campaign aims to remind consumers of the social and economic value of holidaying in the UK, especially for rural communities that rely heavily on tourism.
“This isn’t just about numbers, it’s about protecting rural businesses, supporting jobs and preserving the cherished traditions of British holidays,” Attwood added.
“This campaign is a call to action for everyone to recognise the value of holidaying within the UK and work together to secure the future of our domestic tourism sector.”
For professionals in the outdoor hospitality industry, including caravan park operators and RV manufacturers, the DRIVE35 programme could offer opportunities to access capital for transitioning to cleaner technologies.
It may also provide incentives to innovate in product design and manufacturing processes, supporting long-term competitiveness in an evolving travel market.
The alignment of funding and tourism promotion efforts may also stimulate increased demand for caravanning and motorhome holidays, strengthening the link between manufacturing and destination-based industries.