Tax-free Shopping
Debate between Viscount Younger of Leckie and Lord Vaizey of Didcot
Lord Vaizey of Didcot
To ask His Majesty’s Government what is their assessment of the impact on the United Kingdom economy of the abolition of tax-free shopping.
Viscount Younger of Leckie (Con)
My Lords, as part of the reversal of almost all the tax measures set out in the growth plan, the Government are not proceeding with plans to introduce a new VAT-free shopping scheme. The Office for Budget Responsibility’s assessment of the withdrawal of the previous VAT-free shopping schemes showed that this would raise a significant amount of revenue and have a small and limited behavioural effect on tourists’ decisions to visit the UK.
Lord Vaizey of Didcot (Con)
My Lords, is my noble friend the Minister aware that, far from costing the Treasury £2 billion a year, reintroducing tax-free shopping would net the Treasury some £350 million a year? Tax-free shopping supports many important industries in our country, such as Harris tweed—as so brilliantly sported by my noble friend Lord Pickles in support of my Question. The introduction of tax-free shopping is supported by the left-wing Mayor of London and the left-wing SNP. In this country we are lucky to have numerous new Governments; whether it is levelling up, growth or economic stability, tax-free shopping supports all three. Will the Minister reconsider the Treasury’s nonsensical decision to abolish it?
Viscount Younger of Leckie (Con)
Well, what I can say is that, on 28 November, HMRC and HMT officials held a round table with industry stakeholders to collate feedback on the Chancellor’s decision to withdraw the introduction. As I indicated in my initial Answer, evidence from VisitBritain continues to show that the key motivators for tourists visiting the UK are our rich history and heritage and vibrant towns and cities, and less so shopping.
House of Lords: Politically Exposed Persons
Debate between Viscount Younger of Leckie and Lord Vaizey of Didcot
Lord Vaizey of Didcot (Con)
My Lords, with impeccable timing, my building society wrote to me yesterday to say that it was reviewing its approach to PEPs, following my throwing my toys out of my pram when it emailed me and my 83 year-old mother to ask, among other things, about my casino winnings. It is quite clear that the banks and building societies are ignoring the FCA’s advice, which is to approach each person as an individual and assess the risk individually. I therefore commend the Minister for reminding them of their obligations and look forward to joining the noble Baroness’s meeting. The only silver lining to come out of this debacle is that it is only since joining your Lordships’ House that I have become a politically prominent figure.
Viscount Younger of Leckie (Con)
The guidance provides clarity on how firms should apply the definitions of a PEP in the money laundering regulations in the UK context. This includes providing that firms should treat only those in the UK who hold truly prominent positions as PEPs and not apply the definition to local government, more junior members of the senior Civil Service or any military officials other than the most senior. On casinos, my noble friend will know that they are regulated by the Gambling Commission. Again, I offer my sympathy with the points raised.
Covid-19: Northern Ireland Economy
Debate between Viscount Younger of Leckie and Lord Vaizey of Didcot
Viscount Younger of Leckie (Con)
The noble Lord makes an important point about connectivity, and the Government are committed to maintaining connectivity between Great Britain and Northern Ireland during these unprecedented times. In relation to aviation, that is why we have worked with the Executive to provide a £5.7 million financial support package to the City of Derry Airport and Belfast City Airport to ensure that services to and from London continue at the height of the pandemic.
Lord Vaizey of Didcot (Con)
My Lords, I have never seen “Game of Thrones”—I am saving that up for my retirement—but I do know that it was filmed in Northern Ireland, which is one of the great centres in the United Kingdom for the success of our creative industries in film, television and other areas. Will my noble friend do all he can to ensure that these industries are protected during the pandemic, particularly with a view to the centenary coming next year, when they will, no doubt, play an important role?
Viscount Younger of Leckie (Con)
I visited the site of “Game of Thrones” a few months ago—it was very interesting. Obviously, this is a devolved area, and the Government have provided the Northern Ireland Executive with additional finance of £2.8 billion for 2021-22 to address the challenges. The Northern Ireland Executive’s Artists Emergency Programme has provided awards of up to £5,000 to support those in the arts sector, creating work and making a vital contribution to the well-being of communities.