Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the effect of the introduction of duty-free arrival stores on (a) employment at Manchester Airport and other regional airports and (b) the economy local to those airports.

Following a consultation, the Government announced on 11 September 2020 that duty-free sales would be extended to EU-bound passengers for the first time in over 20 years from 1 January 2021.

This is a significant boost to all airports and international rail terminals in England, Scotland and Wales, including Manchester, and smaller regional airports and rail hubs, which have not been able to offer duty-free to the EU before.

Duty-free on arrival did not form part of the Government's consultation on the potential approach to duty- and tax-free goods arising from the UK’s new relationship with the EU, which took place in the Spring of 2020. The Government nonetheless acknowledged in the summary of responses to the consultation that some stakeholders had requested the introduction of duty-free on arrival. This also set out that duty-free on arrival was not a scheme that the Government previously offered and was therefore not considering implementing the scheme at that time.

Duty-free on arrival conflicts with international principles of taxation which suggest that goods should be taxed in the country where they are consumed. The introduction of such a scheme could also undermine the UK high street and public health objectives. As with all policy areas, the Government will keep its position under review.