Tax on Imports under £135

Debate between Lord Livermore and Lord Kirkhope of Harrogate

Monday 14th July 2025 Lords Chamber

[Lord Livermore (Lab)]

It is not quite 14 years, I think; these rules came in in 2021. The previous Government prioritised trade facilitation in the aftermath of Brexit and, since 2021, VAT on imports below £135 is collected at the point of sale to prevent congestion at the border. However, this has opened up some opportunities for the rules not to be followed. We recognise that and have established a review, which the previous Government did not.

[Lord Kirkhope of Harrogate (Con)]

My Lords, this imprecision is not helping. In answer to my noble friend Lord Bridges and the noble Lord, Lord Sikka, there was an attempt by the Minister to indicate what modest incomes were. However, equally confusing and rather upsetting is the Government’s inability to define what exactly they mean when they talk about “wealthy people”. Can he be a little more precise and helpful to us?

[Lord Livermore (Lab)]

The noble Lord is very kind in trying to get me to speculate on the Budget, but that is something that I am not going to do. I will not be giving a running commentary on the fiscal forecast, nor will I be speculating on the next Budget now. The Government have pledged not to increase taxes on working people, which is why we are not increasing income tax, national insurance contributions or VAT.

UK Border Strategy: Single Trade Window

Debate between Lord Livermore and Lord Kirkhope of Harrogate

Tuesday 25th February 2025 Lords Chamber

[Lord Kirkhope of Harrogate]

To ask His Majesty’s Government why they have paused the implementation of the Single Trade Window as set out in the 2025 UK Border Strategy (CP352), published in December 2020.

[The Financial Secretary to the Treasury (Lord Livermore) (Lab)]

My Lords, in the context of a challenging fiscal inheritance—

[Lord Livermore (Lab)]

In the context of a challenging fiscal inheritance, the Government paused the delivery of the single trade window as part of a wider value-for-money review across public spending. It remains our long-term intention to deliver a single trade window to support businesses trading across the UK border, and we will provide an update as part of the next phase of the spending review.

[Lord Kirkhope of Harrogate (Con)]

I find that Answer somewhat disappointing and repetitive. I put it to the Minister that this trade window has been accepted. It was a Conservative proposal, which, for once, I believed that the new Government were going to agree to. It has massive support among our traders and all our businesses. It will save them £2 billion in the next 10 years in extra paperwork and red tape. Does the Minister not agree that having the trade window would fit exactly within the Government’s policies of improving the growth in our economy and encouraging trade around the world?

[Lord Livermore (Lab)]

I am grateful to the noble Lord for his question. He is absolutely right when he talks about additional bureaucracy and red tape—created by the Brexit trade deal that the previous Government agreed to. That is the only reason why we need to try to ameliorate the difficulties created by that trade deal. It remains our long-term intention to deliver a single trade window. Businesses benefit from trade, so minimising administrative burdens and reducing trade frictions remain a priority for this Government. We will consider the role the single trade window can play in that, and we will provide an update as part of the next phase of the spending review.