Exiting the European Union (Excise)

Christine Jardine Excerpts

Wednesday 3rd February 2021 Commons Chamber

[Christine Jardine (Edinburgh West) (LD) [V]]

It is a pleasure to follow the hon. Member for North Norfolk (Duncan Baker). My desire to speak in this debate was driven not only by my serious concerns about the immediate impact of the measures on our airports, our retail sector and our tourist industry, but by my concern about the potential for manipulation into yet another grievance strategy by the Scottish National party and all separatists, as part of their continual campaign to undermine the United Kingdom—something that we have, sadly, seen amply demonstrated in the debate.

I ask the Government to think again, revisit this decision and re-examine the detrimental impact that it could have on our economy. Tourism and the individuals it brings here are a major contributor to the economy of the UK and each of its constituent parts, collectively and individually. Visitors who take advantage contribute around £6 billion a year to our national coffers, which are being dipped into heavily at the moment. More than that, it protects thousands of jobs in our tourist centres and elsewhere.

Attracting high-spending overseas tourists is an economic strategy that is internationally recognised and has worked for us. It has kept our cities on an equal footing with international competitors such as Paris, Milan and Madrid. By removing this incentive, we would be boosting them, to the detriment of our own cities, and detracting from the UK’s international appeal. We would also be adding yet another blow to our hard-hit retail sector at a time when it is already reeling. Experts have warned that this measure would cost my city of Edinburgh an annual loss of £92 million. Those are the figures from the Centre for Economics and Business Research, which also estimates that it would cost Manchester £60 million, Liverpool £32 million and Leeds £18 million, at a time when all our cities can least afford it.

The impact will be felt initially by tourism, retail and airports, but experts have warned that it will gradually spill out and affect other sectors. Hospitality, which is already hard hit, will suffer as tourists choose other countries and other cities in which to spend their money in restaurants, cafés and bars. Manufacturing, too, will feel the pinch. Tourism industry bodies have warned that as many as 70,000 jobs are in immediate jeopardy throughout the United Kingdom, while it has been estimated that the broader damage could affect as many as 138,000 jobs, at a time when unemployment in this country is already rising at an unexpectedly rapid rate.

Our country’s retail, hospitality, events and entertainment sectors, and just about every sector imaginable, are struggling to cope with the impact of a crisis that was beyond our control. The pandemic was visited on us; it was not due to any choice we made. This change would be self-inflicted damage. It would undermine vital industries and cost jobs. I appeal to the Government to think again about the danger inherent in this statutory instrument, the benefits to the country that would be lost and the damage it could do to our future.