Exiting the European Union (Excise) — House of Commons, 2021-02-03
Topic: Domestic Commerce
David Melvyn Linden (Scottish National Party, Centre-left): The hon. Member for Edinburgh West (Christine Jardine) gave a rather remarkable speech, first suggesting that the SNP was grievance-mongering, only then to agree with the annulment motion we have tabled. While some of us on the SNP Benches have become used to these dreary tirades against the cause of independence and that of the SNP, what we are doing today is trying to protect jobs in constituencies like hers. I also want to correct the record: I am sure that my hon. Friend the Member for Kirkcaldy and Cowdenbeath (Neale Hanvey) inadvertently misled the House when he suggested that Edinburgh airport was the national airport—he might be unaware of Glasgow airport being the best, but that is perhaps a childish point I am grateful to my hon. Friend the Member for Paisley and Renfrewshire North (Gavin Newlands) for bringing this annulment motion to the House. The covid-19 pandemic has had a huge impact on all industries and sectors across the UK. However, the tourism and travel industry has been particularly badly hit. The albeit necessary travel restrictions have affected those working for airlines and in airports. Last week I spoke to one of my Baillieston constituents, Sharon Erentz, who works at Glasgow airport. We spoke about how the pandemic will affect air travel for many months—indeed, years—to come, with estimates that holiday makers will be cautious about booking their next holiday abroad for some time For many travellers, VAT-free shopping is part of the travel and airport experience. Many people who are travelling arrive at the airport early to buy holiday gifts—perfumes, alcohol and clothes—and it was clear from speaking to Sharon that many customers wait all year round to shop in the airport and take advantage of the tax relief on aspects of the retail Additionally, many people travelling for business regularly buy products exclusively in the airport, choosing the VAT prices over many other shops. These are often high-value customers, sometimes spending several thousand pounds at once. One of the things the hon. Member for South Cambridgeshire (Anthony Browne) said that struck me was that somehow this is about tax breaks. For a Government who like to talk about jobs, jobs, jobs, it rather seems that the Minister will overlook the jobs of many constituents such as Sharon, who I represent The proposals mean that the products sold in the airport would be the same price as on the high street. Many people have expressed worry over the fact that if there were no VAT-free shopping, many of their usual customers would not buy from the airport shops and stalls anymore. If the airport does not have competitive prices, there is indeed no incentive for holidaymakers to save up to spend that money at the airport. Airline passenger revenue is estimated to plunge by about $314 billion in total—or 55%—from 2019 levels according to the International Air Transport Association. Job losses in the travel industry could reach more than 100 million this year according to analysis by the World Travel and Tourism Council My hon. Friend the Member for Paisley and Renfrewshire North has repeatedly questioned the UK Government over the decision to scrap the VAT retail export scheme and the airside extra-statutory concession scheme. He has highlighted that, for Glasgow, the airside concession, which is now to be scrapped, is worth £8.6 million in revenue. It also means that 170 retail jobs will be put at risk at a time when between 1,500 and 2,000 of the 5,000 jobs based at Glasgow airport have either gone or are under threat. Across the UK, it is estimated that the scrapping of both schemes will cause £1.5 billion-worth of losses. When the travel and tourism industry is on its knees, it is completely irresponsible to cut one of the few remaining income streams that offers hope to so many airports It is vital that the UK Government are doing all they can to support the sectors most affected by the covid-19 pandemic. With the necessary restrictions, the travel and tourism industry has suffered, and with many people now facing an uncertain future and financial security, the UK Government must act. Ending VAT-free shopping adds further concern for many people, such as my constituent Sharon, who are working at airports and already facing an uncertain future ahead. I very much hope that the annulment motion is successful this evening. I will be voting for it to save those jobs that I am proud to support. Most importantly, I hope that all other Members vote to save those jobs as well.