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Duty on Shopping: UK Entry Points

06 September 2023

Lead MP

Henry Smith

Debate Type

Adjournment Debate

Tags

Crime & Law EnforcementEconomyBrexitBusiness & Trade
Other Contributors: 1

At a Glance

Henry Smith raised concerns about duty on shopping: uk entry points in the House of Commons. A government minister responded. Other MPs also contributed.

How the Debate Unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said:

Lead Contributor

Opened the debate
MP Henry Smith, the Member for Crawley and chair of the all-party parliamentary group for the future of aviation, called on the Government to introduce duty-free shopping on arrival at airports and international rail and ferry terminals in Great Britain. He highlighted that since Brexit, there has been a significant increase in sales by UK passengers who shop overseas due to increased personal allowances, but these benefits are not repatriated to British businesses. Smith argued for the introduction of such stores to boost recovery of travel industry, improve global competitiveness, and enhance passenger experience. He provided examples from Norway and modelling predictions from the European Travel Retail Confederation, emphasising economic impacts. He addressed concerns over revenue implications, competition with high street sales, and implementation challenges, advocating that the policy would be cost-neutral or beneficial for Government revenues.

Government Response

Crime & Law EnforcementEconomyBrexitBusiness & Trade
Government Response
The Minister congratulated Henry Smith on his speech and acknowledged the experience he brings to the issue. She explained that in January 2021, the Government extended duty-free sales for EU-bound passengers but is not considering similar policy changes for arrivals due to concerns about impact on UK retailers, infrastructure costs, and potential loss of duties from those sales. The Minister highlighted the public health objective of duties charged on alcohol and tobacco and the economic balance struck by current policies. She noted that any change would require a strong case for the entire UK economy, considering displacement effects and compliance measures to prevent fraud. While she remains open to meeting with Smith to discuss further, she stated that there is no evidence yet to support such changes without disadvantaging high street businesses. The Minister also reiterated Government support for aviation industry recovery through initiatives like 'Flightpath to the future' and maintaining a focus on public finances.
Assessment & feedback
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About House of Commons Debates

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