Mary Glindon MP: Airports need help and duty free reforms could help retail income take off

Airports such as Newcastle have been through a rough time due to Covidand need help to overcome the shock to their business models.
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I support the proposal from the UK Travel Retail Forum and the Airport Operators Association to introduce duty free on arrival at international airports, ports, and train stations in the UK.

The government can enable this at no cost to the taxpayer. Research indicates that these stores will increase income for airports, job creation, and additional tax revenue.

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Arrivals duty free stores would be situated between baggage claim and customs, and only for international arrivals with no changes to duty free allowances or customs procedures.

Mary Glindon, North Tyneside MP.Mary Glindon, North Tyneside MP.
Mary Glindon, North Tyneside MP.

It would help shift duty free sales from airports abroad to UK airports, which rely on retail income, sometimes heavily. Travellers would have a choice about where to get their duty free allowances.

Switching some of the estimated £1 billion spent in the inbound duty free market for alcohol and tobacco would help our airports.

I am told that arrivals stores could increase passenger spend by 20-30% and up to £50 million in additional Crown revenue.

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There would be little impact on domestic retail with which there is a limited overlap. Often occasional holidaymakers can only buy a limited supply of, say gin, abroad and here and it doesn’t stop them replenishing their stocks on the high street.

The government has already decided to increase inbound duty free allowances, and the introduction of arrivals duty free would enable UK airports and businesses to realise the benefits. Over 60 other countries do this.

One further attraction is that less duty free on flights to the UK reduces the weight of the plane and its carbon emissions.

I have tabled written questions in parliament on this and while the minister hasn’t said yes, he hasn’t ruled it out. MPs in other parties have also lobbied for this relatively small but useful change. I hope the government listens. Our airports need all the help they can get.

Mary Glindon is Labour MP for North Tyneside

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