Tax on Imports under £135

Debate between Lord Livermore and Lord Vaizey of Didcot

Monday 14th July 2025 Lords Chamber

[Lord Vaizey of Didcot (Con)]

My Lords, the last Government removed the VAT exemption for tourists—the ability to reclaim VAT—which hit a lot of retailers and crafts companies based in the UK. The unique campaign to get that tax removed united people like the Scottish National Party with the Labour Party. Is that now a done deal? Will the tourist tax remain in place, or will the Government ever review it in terms of attracting international visitors?

[Lord Livermore (Lab)]

Again, I am very happy to take that as a Budget representation. As the noble Lord knows, we keep all taxes under review, but I will not be speculating on the next Budget.

Tourism Levy

Debate between Lord Livermore and Lord Vaizey of Didcot

Monday 14th July 2025 Lords Chamber

[Lord Livermore (Lab)]

I do not know what tourism tax the noble Lord is talking about because, as I think I have made clear, we have no plans to introduce what he is describing. He talked about the recent Budget. In the Budget we introduced a number of policies to help this sector, including freezing the business rates small business multiplier, together with a small business rates relief. This will exempt over a third of properties from business rates. We have also taken steps to reverse the decline of high streets, where one in seven shops now lies empty, by empowering local authorities through high street rental auctions to bring empty units back into use, and committing to permanently lowering business rates for retail, hospitality and leisure properties from 2026.

[Lord Vaizey of Didcot (Con)]

It seems pretty clear that a tourist tax is emerging as a form of generating revenue. Edinburgh, as was said earlier, is imposing one next year, and there are two voluntary levies, in Manchester and Liverpool. It seems to me that the Minister should certainly look at this in a couple of years’ time to see whether it is feasible. But does he agree the key will be that it supports culture, and indeed the hospitality businesses on which it is levied, and does not simply become just another tax that disappears into the council’s coffers?

[Lord Livermore (Lab)]

The noble Lord is talking about something that, again, we have no present plans to introduce.

Tax Increases

Debate between Lord Livermore and Lord Vaizey of Didcot

Thursday 10th July 2025 Lords Chamber

[Lord Livermore (Lab)]

The OBR is aware of the Government’s policy. It is for it to certify the costings of that policy in its next forecast. As I have said, we will ask it for that forecast in time for the annual Budget and make decisions based on that.

[Lord Vaizey of Didcot (Con)]

My Lords, as this seems to be a free-for-all on putting forward our economic theories, could we ban discussions of tax cuts and rises and instead look at tax simplification? There is an excellent article in this week’s New Statesman—a magazine that I read assiduously every week—that regurgitates the excellent work by Paul Johnson, who has been mentioned. It points out that we have one of the longest tax codes in the world. George Osborne was undone by a pasty tax. Surely this Minister can see to it that we can tax an ice cream cone properly and really simplify taxes, which would have a huge impact on business confidence.

[Lord Livermore (Lab)]

I am grateful to the noble Lord for his question. It is not for me to ban conversations about tax rises or cuts, but I understand what he says about tax simplification and will take his thoughts about ice cream cones back to my colleagues in the Treasury.