International Tourists (VAT-free Shopping)

– in the Scottish Parliament at on 21 January 2021.

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Photo of Rona Mackay Rona Mackay Scottish National Party

4. To ask the Scottish Government to expand on the discussions it has had with the United Kingdom Government regarding the continued operation of VAT-free shopping for international tourists visiting Scotland. (S5O-04924)

The Deputy Presiding Officer:

Your question is not quite as it was written in the

Business Bulletin

, but it is close enough—I will let you away with it.

Photo of Fergus Ewing Fergus Ewing Scottish National Party

Despite the serious implications for travel, tourism and retail, there was no prior engagement between the UK Government and the Scottish Government on the matter.

On 22 October, the Cabinet Secretary for Economy, Fair Work and Culture and the Cabinet Secretary for Finance sent a joint letter to the UK chancellor, expressing our opposition to the proposed change and requesting a review of the decision as soon as possible. We will continue to press the UK Government on the matter.

We believe that it is vital that these sectors receive the support they need to weather the difficulties they already face and the further challenges to come, thanks to Brexit, and we do not believe that this is at all an appropriate juncture at which to make such abrupt and significant changes.

Photo of Rona Mackay Rona Mackay Scottish National Party

Our retail and aviation sectors need all the support that they can get in the middle of this global pandemic. Given that the VAT scheme plays a critical role in helping the sector to create jobs and in helping businesses to survive, will the cabinet secretary call on the UK Government to see sense and maintain these crucial schemes, to protect thousands of jobs from being lost and businesses from going under?

Photo of Fergus Ewing Fergus Ewing Scottish National Party

Yes, I will, and I will do so when I meet Nigel Huddleston on 28 January. I am grateful to Rona Mackay for raising the issue in the Scottish Parliament.

The international tourism sector is the least likely to emerge from Covid rapidly. It is the most affected, and surely VAT-free shopping is one of the factors that help to bring people into international custom and visitation. To cut that is to cut the feet from under international tourism when it is on its uppers. It seems to me to be a particularly callous and ill-chosen decision. That is why the Scottish Government has resisted it, and, thanks to Rona Mackay raising it today, I will raise the issue with Nigel Huddleston next week.