Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if his Department has made an assessment of the potential merits of the creation of arrivals duty free stores at airports and ferry terminals across the UK to serve inbound passengers; and if he will make a statement.

Following a consultation, the Government announced on 11 September 2020 that duty-free sales on departure 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 Bournemouth, and smaller regional airports and rail hubs, which have not been able to offer duty-free to the EU before.

The Government would need to consider the cost of introducing a duty-free on arrival scheme. Any new tax relief will impose additional pressure on the public finances, to which excise duty makes a significant contribution. Any loss in tax revenue would have to be balanced by a reduction in public spending, increased borrowing or increased taxation elsewhere.