Baroness Kramer
Main Page: Baroness Kramer (Liberal Democrat - Life peer)
Baroness Penn (Con)
My Lords, January 2021 represents the end of the transition period, and the Government have to make a decision on whether to extend the scheme to all visitors, including EU visitors, who do not currently benefit from it, or to withdraw it. Our view was that extending the scheme could cost up to £0.9 billion, and we had to assess the value for money of that against other priorities that the Government have.
Baroness Kramer (LD) [V]
My Lords, this is kicking an industry when it is already down. As the Minister knows, there is great dispute over the numbers that the Treasury is working on and over the impact of this as an incentive to draw tourists to the UK. Will she consider, at least for a period, leaving the current scheme in place until there is genuine recovery in the tourism industry and in retail? Does she recognise the number of jobs that are at risk if the call that she and the Treasury have made is wrong and we see between 40,000 and 100,000 jobs lost?
Baroness Penn (Con)
My Lords, the option to keep the current scheme in place does not exist. Either we need to extend it to EU visitors, which will attract a significant cost, or we need to end it. We have taken the decision to do the former. As I said, our understanding of the research is that visitors to the UK are driven by a wide range of factors, this not being the primary one. As I said in response to my noble friend’s Question, the OBR will conduct an independent analysis of the Government’s work on this policy.