Arrivals Duty Free at UK Airports Debate

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Department: HM Treasury

Arrivals Duty Free at UK Airports

Baroness Randerson Excerpts
Thursday 30th March 2023

(1 year, 7 months ago)

Lords Chamber
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Baroness Penn Portrait Baroness Penn (Con)
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My Lords, I will repeat what I said to the noble Lord, Lord Foulkes, that this absolutely demonstrates that the priorities of the Scottish Government lie in the wrong place and are not aligned with the people in Scotland.

Baroness Randerson Portrait Baroness Randerson (LD)
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My Lords, returning to the abolition in 2020-21 of the right to reclaim VAT on purchases made in high-street shops, I think the Minister said that nowadays that would cost a considerable amount. But the tourism and retail industries contest that claim. It is two years since that decision was made. Surely the Treasury has up-to-date details.

Baroness Penn Portrait Baroness Penn (Con)
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The noble Baroness is right that there are direct costs of offering any scheme through VAT being refunded but there may be indirect benefits in terms of stimulating tourism and other spending. The Treasury seeks to take both those issues into account when looking at these issues. When the decision was taken to withdraw VAT-free shopping for visitors, the Treasury also held a round table with the industry to hear those views. As I said to my noble friend Lord Vaizey, we continue to welcome representations to help to inform future decisions.