Oral Answers to Questions

Nickie Aiken Excerpts

Tuesday 19th March 2024 Commons Chamber

[Nigel Huddleston]

My hon. Friend will be well aware that Government Members are implementing measures to tackle the very problems she outlines while turning the corner in the economy and doing everything we can to put more money back in people’s pockets, whether workers or pensioners.

[Nickie Aiken (Cities of London and Westminster) (Con)]

20. What assessment he has made of the potential merits of reintroducing tax-free shopping for international visitors.

[The Financial Secretary to the Treasury (Nigel Huddleston)]

As set out at the spring Budget, we are considering the findings of the Office for Budget Responsibility’s review of the original costing of the withdrawal of tax-free shopping, alongside industry representations and broader data. The Government welcome further submissions from stakeholders in response to the OBR’s findings as we keep all taxes under review.

[Nickie Aiken]

Last week, the OBR informed the Treasury Committee that it has not assessed the Treasury’s forecast that it would cost £900 million to extend tax-free shopping to EU visitors. The OBR has also failed to support the Treasury’s assumption that EU visitor behaviour and costs can be extrapolated from assessed non-EU data. The UK retail industry firmly believes that it will cost as little as £50 million to reintroduce tax-free shopping for tourists. As we mark English Tourism Week, is it not time that we had a full, independent review of the Treasury’s data on tax-free shopping?

[Nigel Huddleston]

I thank my hon. Friend for her consistent championing of tourism, particularly during English Tourism Week. It is not in the OBR’s remit to consider the effect of alternative policies and, as expanding tax-free shopping to EU visitors is not current Government policy, it has not considered that. However, the findings of the review will be useful in giving insights on the overall behavioural incentives of the policy, which will be relevant for both EU and non-EU populations. It is therefore right that the Government take time to consider the OBR’s findings along with other representations and within the context of broader data, as announced in the Budget.

--- Later in debate ---

[Jeremy Hunt]

Even Torsten Bell from the left-leaning Resolution Foundation said that the right hon. Lady’s argument that this was a mini Budget-style black hole was nonsense, because we specifically said that we would not fund national insurance cuts from increasing borrowing or cutting spending on public services. I gently ask her, if she wants to put on the mantle of fiscal rectitude, where is Labour going to find literally billions of pounds to fund unfunded spending pledges, from grid decarbon-isation to NHS waiting lists? We all know what that will lead to: higher taxes, like under every Labour Government in history.

[Nickie Aiken (Cities of London and Westminster) (Con)]

T4. St Mary’s in Paddington is a much-loved, much-used hospital in my constituency. Although it was taken off the list of 40 new hospitals to be redeveloped, I am delighted to be working with my hon. Friend the Member for Kensington (Felicity Buchan) and the Minister in the Lords responsible for hospitals to make a case with the trust to ensure that it is redeveloped. Could the Chief Secretary to the Treasury please update the House on the timeframe for making available Government funding so that we can submit the planning business case for the redevelopment?

[The Chief Secretary to the Treasury (Laura Trott)]

I commend my hon. Friend and my hon. Friend the Member for Kensington (Felicity Buchan) on their great work on this project. There appears to be a compelling case, and I know that the programme team at the Department of Health and Social Care is looking closely at the proposal.