Tory plans to scrap airport duty-free shops could cost hundreds of Scots jobs

A Tory Government plan to scrap duty-free shopping at airports could cost hundreds of Scottish jobs, politicians and industry leaders warned last night.

Chancellor Rishi Sunak has said he will stop the travel perk at the end of the year – along with a scheme that allows visitors to the UK to claim back VAT on goods bought in the UK such as perfume, cigarettes and spirits.

Derek Provan, chief executive of AGS Airports, which owns Aberdeen and Glasgow’s terminals, claims 210 jobs and more than £10million in revenue could be lost at his firm’s two sites.

He said: “This is yet another potentially damaging blow for our airports at a time when we’re dealing with the devastating impact of coronavirus on our sector.

“Tax-free sales generate more than £10million per year for our airports, which is used to re-invest in the routes that support the wider economy.

“Without that income, not only will it severely hamper our ability to regrow once we emerge from this crisis, it will result in further job losses.

“I would strongly urge the Chancellor to reconsider this decision. It’s absolutely critical that regional airports
like Aberdeen and Glasgow are supported at this time.

“I hope he can recognise that and reverse the decision on tax-free sales.”

A spokesman for AGS said £8.6million in revenue and 170 retail jobs were at risk in Glasgow, while £1.6million and 45 jobs could potentially be lost in Aberdeen.

MP Gavin Newlands, the SNP’s shadow transport spokesman, said: “The Treasury’s decision to scrap both the VAT Retail Export Scheme and the airside Extra-Statutory Concession scheme is short-sighted and has been met with alarm from businesses, including the Scottish Chambers of Commerce, Scottish Retail Consortium, Scottish Tourism Alliance and Johnstons
of Elgin.

“With the Spending Review on the horizon, it is vital that Rishi Sunak heeds the warnings and U-turns on his plans.”

The UK Treasury said that “less than 10 per cent of non-EU visitors to the UK use the VAT refund shopping scheme” and that “concerns were also raised that the benefits of tax-free shopping in airports aren’t consistently passed on to consumers”.