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1645675

registered interest
date	19/06/2023
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Leasehold: Mortgages
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential impact of changes in the levels of mortgage interest rates on (a) leaseholders and (b) people in shared ownership accommodation; and if he will make a statement.
tabling member constituency	Brentford and Isleworth
tabling member printed	Ruth Cadbury
uin	190123
answer	answer is ministerial correction date of answer 22/06/2023 answer text <p>The pricing and availability of mortgages is a commercial decision for lenders in which the Government does not intervene.</p><p> </p><p>However, we recognise this will be a concerning time for all households with a mortgage, including those with leasehold properties and in shared ownership accommodation. If mortgage holders do fall into financial difficulty, Financial Conduct Authority guidance requires firms to offer tailored support. This could include a range of measures depending on individual circumstances.</p><p> </p><p>The Government have also taken a number of measures aimed at helping people to avoid repossession, including Support for Mortgage Interest (SMI) loans for those in receipt of an income-related benefit, and protection in the courts through the Pre-Action Protocol, which makes it clear that repossession must always be the last resort for lenders.</p><p> </p><p>The Government also recognises the challenges facing households due to elevated costs of living, so has taken action at Spring Budget 2023 to go further to protect struggling families. Taken together, support to households to help with higher bills is worth £94 billion, or £3,300 per household on average, across 2022-23 and 2023-24 – one of the largest in Europe. The government’s successful economic strategy will provide further help. The Bank of England forecast that inflation will fall to 5.1% by the end of 2023, before falling close to target by the end of 2024.</p> answering member constituency Arundel and South Downs answering member printed Andrew Griffith question first answered 22/06/2023 10:00:02 answering member 4874 label Biography information for Andrew Griffith
tabling member	4389 label Biography information for Ruth Cadbury

1505549

registered interest
date	06/09/2022
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Inland Border Facilities: Construction
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, how much public money has been spent on the building of inland border facilities as of 6 September 2022.
tabling member constituency	Brentford and Isleworth
tabling member printed	Ruth Cadbury
uin	48384
answer	answer is ministerial correction date of answer 14/09/2022 answer text <p>Inland Border Facilities (IBFs) were introduced to help facilitate the flow of trade at the border following the UK leaving the EU, and to provide support to ports that were unable to provide the infrastructure required. HMRC ensure all build costs associated with IBFs represent value for money. HMRC monitor the performance at all IBF locations and continuously work to ensure a proactive, continuous improvement approach across the IBF network.</p><p> </p><p>Since April 2020, when HMRC spend on building IBF’s commenced, to the end of August 2022, HMRC has spent around £100 million on the building of IBFs. This includes temporary sites such as Manston, Waterbrook, Birmingham, North Weald, Warrington, and Ebbsfleet that became operational from January 2021 in time for the UK leaving the EU. This also includes an enduring site at Holyhead, as well as early development costs at Dover before a decision was made to not to continue with the build.</p><p> </p><p>Further investment is currently underway to complete the Holyhead IBF.</p><p> </p><p>It is worth noting that the enduring site at Sevington was delivered by the Department for Transport, and so HMRC do not hold these costs.</p> answering member constituency North East Bedfordshire answering member printed Richard Fuller question first answered 14/09/2022 16:27:13 answering member 3912 label Biography information for Richard Fuller
tabling member	4389 label Biography information for Ruth Cadbury

1435263

registered interest
date	24/02/2022
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Exports
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, pursuant to the Answer of 23 February 2022 to Question 125215 on Export Controls, if he will list the countries where the items for export were exported to, which were subject to fines by HMRC for unlicensed export under the Export Control Order 2008 between March to November 2021.
tabling member constituency	Brentford and Isleworth
tabling member printed	Ruth Cadbury
uin	129156
answer	answer is ministerial correction date of answer 01/03/2022 answer text As set out in the answer given to PQ UIN 125215 on 23 February 2022, information on HMRC enforcement outcomes is published in the Strategic Export Controls Annual Reports, which are available on the GOV.UK website. In line with the Commissioners for Revenue and Customs Act 2005, HMRC cannot list the countries to which the goods were exported, because to do so would disclose information about an identifiable ‘person’. answering member constituency South East Cambridgeshire answering member printed Lucy Frazer question first answered 01/03/2022 11:39:02 answering member 4517 label Biography information for Lucy Frazer
tabling member	4389 label Biography information for Ruth Cadbury

1422698

registered interest
date	18/02/2022
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Arms Trade: Fines
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, if he will list the exporters who were fined between March and November 2021 by HMRC for the unlicensed export of (a) military and (b) dual use goods.
tabling member constituency	Brentford and Isleworth
tabling member printed	Ruth Cadbury
uin	125214
answer	answer is ministerial correction date of answer 23/02/2022 answer text Information on HMRC enforcement outcomes is published in the Strategic Export Controls Annual Reports. In line with the Commissioners for Revenue and Customs Act 2005, HMRC cannot list the items that were exported, because to do so would disclose information about an identifiable ‘person’. answering member constituency South East Cambridgeshire answering member printed Lucy Frazer question first answered 23/02/2022 17:05:06 answering member 4517 label Biography information for Lucy Frazer
tabling member	4389 label Biography information for Ruth Cadbury

1422699

registered interest
date	18/02/2022
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Export Controls
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, if he will list the items that exporters were fined by HMRC for unlicensed export of under the Export Control Order 2008 from March to November 2021.
tabling member constituency	Brentford and Isleworth
tabling member printed	Ruth Cadbury
uin	125215
answer	answer is ministerial correction date of answer 23/02/2022 answer text <p>Information on HMRC enforcement outcomes is published in the Strategic Export Controls Annual Reports. In line with the Commissioners for Revenue and Customs Act 2005, HMRC cannot list the items that were exported, because to do so would disclose information about an identifiable ‘person’. However, HMRC can confirm that the items were either military rated or dual use goods.</p> answering member constituency South East Cambridgeshire answering member printed Lucy Frazer question first answered 23/02/2022 17:02:43 answering member 4517 label Biography information for Lucy Frazer
tabling member	4389 label Biography information for Ruth Cadbury

1272208

registered interest
date	17/12/2020
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Duty Free Allowances
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, what discussions his Department has had with the Department for Culture, Media and Sport on the abolition of (a) the VAT Retail Export Scheme and (b) tax-free airside shopping.
tabling member constituency	Brentford and Isleworth
tabling member printed	Ruth Cadbury
uin	131289
answer	answer is ministerial correction date of answer 13/01/2021 answer text <p>HM Treasury ministers have responsibility for tax policy.</p><p> </p><p>Ahead of the end of the transition period, the Government has announced the VAT and excise duty treatment of goods purchased by individuals for personal use and carried in their luggage arriving from or going overseas (passengers). The following rules will apply from 1 January 2021:</p><p>- Passengers travelling from Great Britain to any destination outside the United Kingdom (UK) will be able to purchase duty-free excise goods once they have passed security controls at ports, airports, and international rail stations.</p><p>- Personal allowances will apply to passengers entering Great Britain from a destination outside of the UK, with alcohol allowances significantly increased.</p><p>- The VAT Retail Export Scheme (RES) in Great Britain will not be extended to EU residents and will be withdrawn for all passengers.</p><p>- The concessionary treatment on tax-free sales for non-excise goods will be removed across the UK.</p><p> </p><p>The Government published a consultation which ran from 11 March to 20 May. During this time the Government held a number of virtual meetings with industry stakeholders to hear their views and received 73 responses to the consultation. The Government is also continuing to meet and discuss the changes with a variety of stakeholders, including other Government departments, following the announcement of these policies.</p><p> </p><p>The detailed rationale for these changes are included in the written ministerial statement and summary of responses to the recent consultation: <a href="https://questions-statements.parliament.uk/written-statements/detail/2020-09-11/hcws448" target="_blank">https://questions-statements.parliament.uk/written-statements/detail/2020-09-11/hcws448</a> and <a href="https://www.gov.uk/government/consultations/a-consultation-on-duty-free-and-tax-free-goods-carried-by-passengers" target="_blank">https://www.gov.uk/government/consultations/a-consultation-on-duty-free-and-tax-free-goods-carried-by-passengers</a>. A technical note has also been issued to stakeholders to expand on this document and to respond to issues raised by stakeholders.</p><p> </p><p>The concessionary treatment on tax-free airside sales currently affects airports that fly to non-EU destinations. The extension of duty-free sales to EU bound passengers will be a significant boost to all airports in England, Scotland and Wales, including smaller regional airports which have not been able to offer duty-free to the EU before.</p><p> </p><p>On 25 November the independent Office for Budget Responsibility (OBR) set out their assessment of the fiscal impact of the withdrawal of the tax-free schemes.</p><p> </p><p>Factoring in a higher-than-usual elasticity of 1.9 to account for spending on luxury goods, the OBR estimate that the withdrawal of the VAT RES will result in a significant direct Exchequer saving of around £400 million per year, once passenger numbers recover from the impacts of Covid-19. Based on the 1.2 million users of the scheme who received a refund in 2019, this includes an assumption that approximately 20,000 – 30,000 fewer tourists visit Great Britain a year. That is 0.07% of the 40 million visitors to the UK in 2019.</p><p> </p><p>The OBR estimate that the withdrawal of tax-free airside sales will raise approximately £170 million per year for the Exchequer, after behavioural responses are taken into account and passenger numbers recover from the impacts of Covid-19.</p><p> </p><p>The OBR also looked at this package in the round when assessing the indirect impact on the economy – including the effects of extending duty-free sales – alongside the substantial support provided to the economy and retail industry.</p><p> </p><p>The Government also recognises the challenges the aviation sector is facing as it recovers from the impacts of Covid-19 and has supported the sector throughout the pandemic, and continues to do so, including schemes to raise capital, flexibilities with tax bills, and financial support for employees.</p> answering member constituency Saffron Walden answering member printed Kemi Badenoch grouped question UIN 131290 131291 131292 131293 question first answered 13/01/2021 10:00:18 answering member 4597 label Biography information for Kemi Badenoch
tabling member	4389 label Biography information for Ruth Cadbury

1272210

registered interest
date	17/12/2020
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Duty Free Allowances
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, what representations he has received from the hospitality industry on the decision to remove (a) the VAT Retail Export Scheme and (b) tax-free airside shopping.
tabling member constituency	Brentford and Isleworth
tabling member printed	Ruth Cadbury
uin	131290
answer	answer is ministerial correction date of answer 13/01/2021 answer text <p>HM Treasury ministers have responsibility for tax policy.</p><p> </p><p>Ahead of the end of the transition period, the Government has announced the VAT and excise duty treatment of goods purchased by individuals for personal use and carried in their luggage arriving from or going overseas (passengers). The following rules will apply from 1 January 2021:</p><p>- Passengers travelling from Great Britain to any destination outside the United Kingdom (UK) will be able to purchase duty-free excise goods once they have passed security controls at ports, airports, and international rail stations.</p><p>- Personal allowances will apply to passengers entering Great Britain from a destination outside of the UK, with alcohol allowances significantly increased.</p><p>- The VAT Retail Export Scheme (RES) in Great Britain will not be extended to EU residents and will be withdrawn for all passengers.</p><p>- The concessionary treatment on tax-free sales for non-excise goods will be removed across the UK.</p><p> </p><p>The Government published a consultation which ran from 11 March to 20 May. During this time the Government held a number of virtual meetings with industry stakeholders to hear their views and received 73 responses to the consultation. The Government is also continuing to meet and discuss the changes with a variety of stakeholders, including other Government departments, following the announcement of these policies.</p><p> </p><p>The detailed rationale for these changes are included in the written ministerial statement and summary of responses to the recent consultation: <a href="https://questions-statements.parliament.uk/written-statements/detail/2020-09-11/hcws448" target="_blank">https://questions-statements.parliament.uk/written-statements/detail/2020-09-11/hcws448</a> and <a href="https://www.gov.uk/government/consultations/a-consultation-on-duty-free-and-tax-free-goods-carried-by-passengers" target="_blank">https://www.gov.uk/government/consultations/a-consultation-on-duty-free-and-tax-free-goods-carried-by-passengers</a>. A technical note has also been issued to stakeholders to expand on this document and to respond to issues raised by stakeholders.</p><p> </p><p>The concessionary treatment on tax-free airside sales currently affects airports that fly to non-EU destinations. The extension of duty-free sales to EU bound passengers will be a significant boost to all airports in England, Scotland and Wales, including smaller regional airports which have not been able to offer duty-free to the EU before.</p><p> </p><p>On 25 November the independent Office for Budget Responsibility (OBR) set out their assessment of the fiscal impact of the withdrawal of the tax-free schemes.</p><p> </p><p>Factoring in a higher-than-usual elasticity of 1.9 to account for spending on luxury goods, the OBR estimate that the withdrawal of the VAT RES will result in a significant direct Exchequer saving of around £400 million per year, once passenger numbers recover from the impacts of Covid-19. Based on the 1.2 million users of the scheme who received a refund in 2019, this includes an assumption that approximately 20,000 – 30,000 fewer tourists visit Great Britain a year. That is 0.07% of the 40 million visitors to the UK in 2019.</p><p> </p><p>The OBR estimate that the withdrawal of tax-free airside sales will raise approximately £170 million per year for the Exchequer, after behavioural responses are taken into account and passenger numbers recover from the impacts of Covid-19.</p><p> </p><p>The OBR also looked at this package in the round when assessing the indirect impact on the economy – including the effects of extending duty-free sales – alongside the substantial support provided to the economy and retail industry.</p><p> </p><p>The Government also recognises the challenges the aviation sector is facing as it recovers from the impacts of Covid-19 and has supported the sector throughout the pandemic, and continues to do so, including schemes to raise capital, flexibilities with tax bills, and financial support for employees.</p> answering member constituency Saffron Walden answering member printed Kemi Badenoch grouped question UIN 131289 131291 131292 131293 question first answered 13/01/2021 10:00:18 answering member 4597 label Biography information for Kemi Badenoch
tabling member	4389 label Biography information for Ruth Cadbury

1272212

registered interest
date	17/12/2020
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Duty Free Allowances
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, what assessment has he made of the effect of the removal of the (a) VAT Retail Export Scheme and (b) tax-free airside shopping on the tourism sector within London.
tabling member constituency	Brentford and Isleworth
tabling member printed	Ruth Cadbury
uin	131291
answer	answer is ministerial correction date of answer 13/01/2021 answer text <p>HM Treasury ministers have responsibility for tax policy.</p><p> </p><p>Ahead of the end of the transition period, the Government has announced the VAT and excise duty treatment of goods purchased by individuals for personal use and carried in their luggage arriving from or going overseas (passengers). The following rules will apply from 1 January 2021:</p><p>- Passengers travelling from Great Britain to any destination outside the United Kingdom (UK) will be able to purchase duty-free excise goods once they have passed security controls at ports, airports, and international rail stations.</p><p>- Personal allowances will apply to passengers entering Great Britain from a destination outside of the UK, with alcohol allowances significantly increased.</p><p>- The VAT Retail Export Scheme (RES) in Great Britain will not be extended to EU residents and will be withdrawn for all passengers.</p><p>- The concessionary treatment on tax-free sales for non-excise goods will be removed across the UK.</p><p> </p><p>The Government published a consultation which ran from 11 March to 20 May. During this time the Government held a number of virtual meetings with industry stakeholders to hear their views and received 73 responses to the consultation. The Government is also continuing to meet and discuss the changes with a variety of stakeholders, including other Government departments, following the announcement of these policies.</p><p> </p><p>The detailed rationale for these changes are included in the written ministerial statement and summary of responses to the recent consultation: <a href="https://questions-statements.parliament.uk/written-statements/detail/2020-09-11/hcws448" target="_blank">https://questions-statements.parliament.uk/written-statements/detail/2020-09-11/hcws448</a> and <a href="https://www.gov.uk/government/consultations/a-consultation-on-duty-free-and-tax-free-goods-carried-by-passengers" target="_blank">https://www.gov.uk/government/consultations/a-consultation-on-duty-free-and-tax-free-goods-carried-by-passengers</a>. A technical note has also been issued to stakeholders to expand on this document and to respond to issues raised by stakeholders.</p><p> </p><p>The concessionary treatment on tax-free airside sales currently affects airports that fly to non-EU destinations. The extension of duty-free sales to EU bound passengers will be a significant boost to all airports in England, Scotland and Wales, including smaller regional airports which have not been able to offer duty-free to the EU before.</p><p> </p><p>On 25 November the independent Office for Budget Responsibility (OBR) set out their assessment of the fiscal impact of the withdrawal of the tax-free schemes.</p><p> </p><p>Factoring in a higher-than-usual elasticity of 1.9 to account for spending on luxury goods, the OBR estimate that the withdrawal of the VAT RES will result in a significant direct Exchequer saving of around £400 million per year, once passenger numbers recover from the impacts of Covid-19. Based on the 1.2 million users of the scheme who received a refund in 2019, this includes an assumption that approximately 20,000 – 30,000 fewer tourists visit Great Britain a year. That is 0.07% of the 40 million visitors to the UK in 2019.</p><p> </p><p>The OBR estimate that the withdrawal of tax-free airside sales will raise approximately £170 million per year for the Exchequer, after behavioural responses are taken into account and passenger numbers recover from the impacts of Covid-19.</p><p> </p><p>The OBR also looked at this package in the round when assessing the indirect impact on the economy – including the effects of extending duty-free sales – alongside the substantial support provided to the economy and retail industry.</p><p> </p><p>The Government also recognises the challenges the aviation sector is facing as it recovers from the impacts of Covid-19 and has supported the sector throughout the pandemic, and continues to do so, including schemes to raise capital, flexibilities with tax bills, and financial support for employees.</p> answering member constituency Saffron Walden answering member printed Kemi Badenoch grouped question UIN 131289 131290 131292 131293 question first answered 13/01/2021 10:00:18 answering member 4597 label Biography information for Kemi Badenoch
tabling member	4389 label Biography information for Ruth Cadbury

1272214

registered interest
date	17/12/2020
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Duty Free Allowances
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, what steps his Department is taking to support (a) airports and (b) boroughs surrounding airports after the removal of tax-free airside shopping.
tabling member constituency	Brentford and Isleworth
tabling member printed	Ruth Cadbury
uin	131292
answer	answer is ministerial correction date of answer 13/01/2021 answer text <p>HM Treasury ministers have responsibility for tax policy.</p><p> </p><p>Ahead of the end of the transition period, the Government has announced the VAT and excise duty treatment of goods purchased by individuals for personal use and carried in their luggage arriving from or going overseas (passengers). The following rules will apply from 1 January 2021:</p><p>- Passengers travelling from Great Britain to any destination outside the United Kingdom (UK) will be able to purchase duty-free excise goods once they have passed security controls at ports, airports, and international rail stations.</p><p>- Personal allowances will apply to passengers entering Great Britain from a destination outside of the UK, with alcohol allowances significantly increased.</p><p>- The VAT Retail Export Scheme (RES) in Great Britain will not be extended to EU residents and will be withdrawn for all passengers.</p><p>- The concessionary treatment on tax-free sales for non-excise goods will be removed across the UK.</p><p> </p><p>The Government published a consultation which ran from 11 March to 20 May. During this time the Government held a number of virtual meetings with industry stakeholders to hear their views and received 73 responses to the consultation. The Government is also continuing to meet and discuss the changes with a variety of stakeholders, including other Government departments, following the announcement of these policies.</p><p> </p><p>The detailed rationale for these changes are included in the written ministerial statement and summary of responses to the recent consultation: <a href="https://questions-statements.parliament.uk/written-statements/detail/2020-09-11/hcws448" target="_blank">https://questions-statements.parliament.uk/written-statements/detail/2020-09-11/hcws448</a> and <a href="https://www.gov.uk/government/consultations/a-consultation-on-duty-free-and-tax-free-goods-carried-by-passengers" target="_blank">https://www.gov.uk/government/consultations/a-consultation-on-duty-free-and-tax-free-goods-carried-by-passengers</a>. A technical note has also been issued to stakeholders to expand on this document and to respond to issues raised by stakeholders.</p><p> </p><p>The concessionary treatment on tax-free airside sales currently affects airports that fly to non-EU destinations. The extension of duty-free sales to EU bound passengers will be a significant boost to all airports in England, Scotland and Wales, including smaller regional airports which have not been able to offer duty-free to the EU before.</p><p> </p><p>On 25 November the independent Office for Budget Responsibility (OBR) set out their assessment of the fiscal impact of the withdrawal of the tax-free schemes.</p><p> </p><p>Factoring in a higher-than-usual elasticity of 1.9 to account for spending on luxury goods, the OBR estimate that the withdrawal of the VAT RES will result in a significant direct Exchequer saving of around £400 million per year, once passenger numbers recover from the impacts of Covid-19. Based on the 1.2 million users of the scheme who received a refund in 2019, this includes an assumption that approximately 20,000 – 30,000 fewer tourists visit Great Britain a year. That is 0.07% of the 40 million visitors to the UK in 2019.</p><p> </p><p>The OBR estimate that the withdrawal of tax-free airside sales will raise approximately £170 million per year for the Exchequer, after behavioural responses are taken into account and passenger numbers recover from the impacts of Covid-19.</p><p> </p><p>The OBR also looked at this package in the round when assessing the indirect impact on the economy – including the effects of extending duty-free sales – alongside the substantial support provided to the economy and retail industry.</p><p> </p><p>The Government also recognises the challenges the aviation sector is facing as it recovers from the impacts of Covid-19 and has supported the sector throughout the pandemic, and continues to do so, including schemes to raise capital, flexibilities with tax bills, and financial support for employees.</p> answering member constituency Saffron Walden answering member printed Kemi Badenoch grouped question UIN 131289 131290 131291 131293 question first answered 13/01/2021 10:00:18 answering member 4597 label Biography information for Kemi Badenoch
tabling member	4389 label Biography information for Ruth Cadbury

1272216

registered interest
date	17/12/2020
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Duty Free Allowances
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the effect of the removal of the (a) VAT Retail Export Scheme (b) Tax-Free airside shopping on (i) Heathrow Airport (ii) London Borough of Hounslow (iii) London and (iv) the UK.
tabling member constituency	Brentford and Isleworth
tabling member printed	Ruth Cadbury
uin	131293
answer	answer is ministerial correction date of answer 13/01/2021 answer text <p>HM Treasury ministers have responsibility for tax policy.</p><p> </p><p>Ahead of the end of the transition period, the Government has announced the VAT and excise duty treatment of goods purchased by individuals for personal use and carried in their luggage arriving from or going overseas (passengers). The following rules will apply from 1 January 2021:</p><p>- Passengers travelling from Great Britain to any destination outside the United Kingdom (UK) will be able to purchase duty-free excise goods once they have passed security controls at ports, airports, and international rail stations.</p><p>- Personal allowances will apply to passengers entering Great Britain from a destination outside of the UK, with alcohol allowances significantly increased.</p><p>- The VAT Retail Export Scheme (RES) in Great Britain will not be extended to EU residents and will be withdrawn for all passengers.</p><p>- The concessionary treatment on tax-free sales for non-excise goods will be removed across the UK.</p><p> </p><p>The Government published a consultation which ran from 11 March to 20 May. During this time the Government held a number of virtual meetings with industry stakeholders to hear their views and received 73 responses to the consultation. The Government is also continuing to meet and discuss the changes with a variety of stakeholders, including other Government departments, following the announcement of these policies.</p><p> </p><p>The detailed rationale for these changes are included in the written ministerial statement and summary of responses to the recent consultation: <a href="https://questions-statements.parliament.uk/written-statements/detail/2020-09-11/hcws448" target="_blank">https://questions-statements.parliament.uk/written-statements/detail/2020-09-11/hcws448</a> and <a href="https://www.gov.uk/government/consultations/a-consultation-on-duty-free-and-tax-free-goods-carried-by-passengers" target="_blank">https://www.gov.uk/government/consultations/a-consultation-on-duty-free-and-tax-free-goods-carried-by-passengers</a>. A technical note has also been issued to stakeholders to expand on this document and to respond to issues raised by stakeholders.</p><p> </p><p>The concessionary treatment on tax-free airside sales currently affects airports that fly to non-EU destinations. The extension of duty-free sales to EU bound passengers will be a significant boost to all airports in England, Scotland and Wales, including smaller regional airports which have not been able to offer duty-free to the EU before.</p><p> </p><p>On 25 November the independent Office for Budget Responsibility (OBR) set out their assessment of the fiscal impact of the withdrawal of the tax-free schemes.</p><p> </p><p>Factoring in a higher-than-usual elasticity of 1.9 to account for spending on luxury goods, the OBR estimate that the withdrawal of the VAT RES will result in a significant direct Exchequer saving of around £400 million per year, once passenger numbers recover from the impacts of Covid-19. Based on the 1.2 million users of the scheme who received a refund in 2019, this includes an assumption that approximately 20,000 – 30,000 fewer tourists visit Great Britain a year. That is 0.07% of the 40 million visitors to the UK in 2019.</p><p> </p><p>The OBR estimate that the withdrawal of tax-free airside sales will raise approximately £170 million per year for the Exchequer, after behavioural responses are taken into account and passenger numbers recover from the impacts of Covid-19.</p><p> </p><p>The OBR also looked at this package in the round when assessing the indirect impact on the economy – including the effects of extending duty-free sales – alongside the substantial support provided to the economy and retail industry.</p><p> </p><p>The Government also recognises the challenges the aviation sector is facing as it recovers from the impacts of Covid-19 and has supported the sector throughout the pandemic, and continues to do so, including schemes to raise capital, flexibilities with tax bills, and financial support for employees.</p> answering member constituency Saffron Walden answering member printed Kemi Badenoch grouped question UIN 131289 131290 131291 131292 question first answered 13/01/2021 10:00:18 answering member 4597 label Biography information for Kemi Badenoch
tabling member	4389 label Biography information for Ruth Cadbury