Exiting the European Union (Excise)

Baroness Winterton of Doncaster Excerpts

Wednesday 3rd February 2021 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

I will be calling Gavin Newlands shortly, but I warn Back-Bench Members that I will be imposing a five-minute time limit straight away—this is a short, 90-minute debate —to allow time for the Front-Bench spokespeople. When the time limit is in effect, there will be a countdown clock visible on the screens of hon. Members participating virtually and, of course, on the screens in the Chamber.

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[Katherine Fletcher (South Ribble) (Con) [V]]

It is a pleasure to follow the hon. Member for Paisley and Renfrewshire North (Gavin Newlands), who speaks with such passion about regional airports and their importance. As Members can hear, I, too, am a user of regional airports, not least the fantastic Manchester airport, Liverpool John Lennon airport, and, I confess, Glasgow and Edinburgh airports as well. When a flight is offered with the options of those airports or Heathrow, the choice is clear for someone who is based in the north-west: off you pop to wonderful Scotland and say hi to our friends there.

I will speak to two dry-sounding but important measures in this statutory instrument. The first is extending duty-free sales to UK residents who visit the EU. For the first time in 20 years, we can have EU duty-free on our holidays. I will touch directly on the point that the hon. Gentleman has just made about supporting regional airports. In the last 20 years, who has not wandered through an airport at 3 o’clock in the morning ready to go on holiday and sighed at the duty-free, thinking that it would be a wonderful thing to clink on to the plane with, so that we were all prepared at the other end when we got to the apartment in Greece, Spain or any of the other wonderful holiday destinations that we share and visit with our friends in Europe? Great news: this is now possible. The opportunity to do a little bit of duty-free shopping will not only make a long wait for a flight at 3, 4, 5 or 6 in the morning more interesting, but it will also mean that we can directly support our local airports, which employ people and provide jobs, careers, lifestyles and communities for so many around Manchester, Liverpool and beyond. What else can I say?

What does this measure really mean? It means the return of personal allowances, which will be roughly quadrupled. In short, it means the return of the booze cruise, a long-lost institution that our proud nation has not been able to engage in. It may astonish Members to realise that when I was a child, there was much planning in our family for the biannual trip to France to get some wonderful wine, sparkling wine and beer. It was a military logistical operation, with months of planning, including considerations as deep as how many adults we could fit in the car, which of the smaller adults to fit the acquired goods around, and whether a Ford Sierra or a Ford Orion should be used to maintain the optimal packing-to-adult ratio.

It is a bit of fun, and everybody must drink responsibly, but I massively welcome this. It will give those of us in the north the opportunity to make that six-hour journey down to Dover, go over on the ferry and see some of France, and use our personal allowances to sample something that is not available in the UK and bring it back, while having a bit of fun on a trip for the family. That is all encapsulated in quite a dry SI. I will not trouble the House longer, but the return of the booze cruise is here, and I say “Cheers!” to that.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Right. I call the shadow Minister, James Murray.

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[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

Before I begin to speak today, it is appropriate that I declare an interest as chair of the all-party group for textiles and fashion, and that I express my thanks to Heather Lafferty and Tamara Cincik of Fashion Roundtable, and Chantelle De Villiers from the British Retail Consortium, for their important work campaigning right across the United Kingdom on these matters.

One of the positives to come out of the pandemic has surely been the celebration of heroes in our local communities, care homes, schools and NHS. We do not often think of retailers, shop owners or small businesses across the UK as some of the heroes of the pandemic, but in reality we should. When we boil down the pandemic to its simplest principles, we see shops and local businesses doing everything they can, even to the point of closure, so that we can keep the most vulnerable in our communities safe. Many of these same businesses will be the first to face the economic and employment consequences of a 7.3% decrease in non-EU visitors to the UK, which is what is predicted by the Centre for Economics and Business Research as a result of the Government scrapping the VAT retail export scheme. So it would be remiss of me, as chair of the all-party group on textiles and fashion, not to focus my remarks today on the impact of this decision on the textile and fashion industry across Scotland and across the United Kingdom.

The Government have gone to great lengths to stress their commitment to levelling up the economy out of the pandemic and to boosting the economic performance of the cities and regions of the United Kingdom way beyond London. In their exit from the VAT retail export scheme, however, it would appear that the Government have fallen at the first hurdle. The Evening Standard reported before Christmas that £500 million of tax-free shopping takes place in over 12,000 stores outside London each year. Fashion Roundtable estimates that the fashion industry in Scotland is made up of nearly 2,000 businesses and employs 30,000 people. In 2019, £92 million in VAT-free fashion purchases were made in Edinburgh and a further £23 million in VAT-free fashion purchases were made in Glasgow and surrounding areas. Each of these purchases supports our high streets, businesses and jobs—high streets that need every purchase to survive at this time, businesses that are at the heart of local communities and jobs that help to provide for families and loved ones.

Hundreds of employees in my constituency are reeling already from the announcement of Boohoo’s takeover of Debenhams and the lack of investment in bricks-and-mortar stores in our town centres. Every single one of them is facing untold uncertainty as to what the future holds, so Government must support the recovery of retail. It is my very present fear that thousands more will be affected across Scotland if we fail to do everything in our power to support our high streets and those who work in them.

Tourism is indeed the beating heart of our high streets and of the fashion industry as a whole. However, tourists in search of high-end purchases from UK stores will show retailers and those employed by them very little loyalty if there is ample incentive to shop elsewhere. Scottish Enterprise estimates that the tourist industry in Scotland is made up of 15,000 companies employing 218,000 people. That is 15,000 companies and 218,000 people whose businesses and jobs could be affected as a consequence of tourists choosing to shop and visit elsewhere. For my local area and region surrounding the constituency, that is close to 30,000 people. The ripple effect of this decision to leave the VAT retail export scheme should not be understated. Tourists have come to the UK in search of retail purchases and, for the duration of their stay, let us not forget, they experience, visit and, most importantly for our debate today, buy so much more. We will lose their business to other destinations that continue to offer VAT-free shopping.

There are so many whose livelihoods depend on the distinctiveness and renown that come from being branded with the label “Made in Scotland”, the inspiration, flavour, taste or beauty of which cannot be found anywhere else in the world. These are businesses and jobs that depend heavily on the tourist trade. They have had their businesses decimated by covid-19, and they are relying on a strong rebound in tourist travel out of this pandemic for their very survival. So we should and must do everything we can to encourage tourism. Too many businesses and too many jobs in fashion, retail and further afield are at risk if we fail to do so.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I am very sorry, but we do have to move on.