Exiting the European Union (Excise)

Neale Hanvey Excerpts

Wednesday 3rd February 2021 Commons Chamber

[Neale Hanvey (Kirkcaldy and Cowdenbeath) (SNP)]

The first casualty of covid was aviation. That saw the collapse of Flybe, the UK Government’s supine response to fire and re-hire practices, and other significant job losses. Whilst Edinburgh airport sits in the constituency of the hon. Member for Edinburgh West (Christine Jardine), I have been supporting a number of my constituents in Kirkcaldy and Cowdenbeath who work at our national airport just across the Forth. They are airline pilots, cabin crew, ground staff, hospitality staff and facility staff. I have also been supporting Edinburgh airport’s chief executive, Gordon Dewar, and his team through letter writing, parliamentary questions, speaking in debates and joining the all-party parliamentary group. I have met twice with the aviation Minister, the Under-Secretary of State for Transport, the hon. Member for Witney (Robert Courts): in October and again in January this year. We have spoken about the need for a comprehensive aviation recovery strategy and why that is absolutely vital to the sector and to my constituents. Those discussions included, but were not limited to, the changes being made to airside sales. In all this time, I have not had a meaningful answer to any of my questions and concerns, or indeed those of the Edinburgh airport leadership team.

Given this sorry tale, and the absence of any strategy coming forward from the UK Government, it is hard to express the alarm, dismay, disbelief and anger when it emerged during the pandemic and just before the Brexit chaos that the UK Government planned to entirely remove VAT exemption on all airside sales, save for alcohol and tobacco. In tandem with that, the decision to abolish VAT RES for high-street sales was another significant blow.

This is at a time when we should be looking to strengthen and rebuild our economy, and plan for a recovery of tourism and related sectors. This decision will have an obvious and substantial negative impact on all the above. For example, at Edinburgh airport, the loss of VAT exemption for airside sales will result in over £7.6 million in lost revenue and place hundreds of further jobs in peril. It will place at risk a further £3 million of revenue from retail, fashion and other specialist shops. This is job-sustaining revenue and it cannot and will not be compensated by any stretch through duty-free liquor and tobacco.

This would have a considerable financial and economic impact at the best of times, but at the time of covid it threatens the very survival of the aviation industry and will cause untold damage in the wider economy, including job losses and slower economic recovery. That will be across these islands, not just in Scotland, but aviation enables much of Scotland’s economy, from tourism, business and education to culture and research. As Gordon Dewar of Edinburgh airport commented, aviation makes that possible, but we are

“not too big to fail.”

Brexit was an ill thought-out and massively damaging policy, seeing legislation such as this being implemented at the worst possible time for affected sectors. These intertwined sectors are already in survival mode. The hon. Member for South Ribble (Katherine Fletcher) may make light of the return of the booze cruise, but it is nothing to be celebrated when it is being paid for on the back of Scottish jobs and jobs across these islands, and the rather parochial view of the hon. Member for Dover (Mrs Elphicke) on this change and her appeal to such a narrow audience completely ignores that pernicious human impact beyond her back garden.

The creativity of contributions from the Government’s virtual Benches cannot camouflage the damage this will inflict. Brexit is an unmitigated disaster and the UK Government clearly care not a jot for Scotland’s wishes or our economic potential. This is but one of the compelling reasons why Scotland will very soon vote for independence and join the world.