Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential impact of personal allowances for people bringing excise and non-excise goods into the UK for personal use on the economy.

Following a consultation in Spring 2020, on 1 January 2021, the Government extended duty-free sales to EU-bound passengers at UK ports and airports for the first time in over 20 years. This is a significant boost to all ports, airports and international rail terminals in England, Scotland and Wales, including smaller regional airports and rail hubs, which were not able to offer duty-free to the EU before.

The Government also introduced personal allowances for passengers entering Great Britain from the EU. During the consultation stakeholders expressed concerns about this change, particularly those that deal with large volumes of EU passengers travelling to Great Britain in a vehicle by ferry or train, given many passengers were used to bringing back unlimited amounts of goods from the EU. The Government therefore used its freedoms from EU rules to significantly increase alcohol allowances for all passengers. This enables visitors to bring in, for example, three crates of beer, two cases of wine and one case of sparkling wine, without having to pay the relevant taxes, with Great Britain having one of the most generous allowances in the world.