Edinburgh MP warns UK government plans to end VAT-free shopping for tourists will cost jobs in Edinburgh

Edinburgh West Liberal Democrat MP Christine Jardine has warned jobs at Edinburgh Airport are at risk because of UK Government plans to scrap VAT-free shopping for overseas tourists.

Christine Jardine says the government's plans would be a self-inflicted blow Photo: Aaron Chown/PA Wire

And she said the move would hit the tourism and retail sectors just as they were struggling to recover from the Covid pandemic.

"This is a threat to Edinburgh Airport and the retail and tourism sector in Edinburgh. The Centre for Economic and Business Research estimates if this were to go ahead, ending VAT free sales for people taking stuff abroad, it could cost Edinburgh £92m a year.”

The government announced last year it would end the VAT Retail Export Scheme, which allows overseas visitors to reclaim the VAT they pay on goods purchased but not consumed in the UK.Ms Jardine, who is the Lib Dems’ Treasury spokeswoman at Westminster, said: “About 70,000 jobs UK-wide in the tourism sector would be affected right away, but that would spill out into hospitality, retail and there would be something like 138,000 jobs lost at a time when our retail sector, the airport, hospitality and tourism are all reeling from the effects of the pandemic. This would be a self-inflicted blow at a time when we can least afford it.”

And she called on the government to rethink its plans.

“The airport is already suffering from the loss of tourist trade this year. As we recover from this pandemic we don’t want to undermine our tourist industry any more and add to the burden that’s being felt by retail, hospitality and just about every other sector. It might seem like a small thing bu the impact could be huge.”

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