BRANDON LEWIS: Why should the French benefit at our expense because of the UK’s tourist tax?
Britain stands proud as one of the world’s premier fashion hubs. It is the birthplace of iconic designers, from the sustainability-driven Stella McCartney to the rebelliously chic Vivienne Westwood.
British brands like Mulberry and Burberry resonate with luxury and quintessential British style. Yet, somewhere along the well-tailored path, London has missed a step, and Paris is cashing in.
Despite our fashion credentials, the allure of the French capital has become irresistible for international shoppers. It’s not just about fashion, but fiscal policy too.
Galeries Lafayette and Rue de Rivoli aren’t merely glittering with designer wares. They shimmer with tax incentives, making shopping in Paris financially savvy.
Every tourist who spends in these Parisian hubs is sending ripples through the wider economy.
Every purchase is supplemented by hotel bookings, restaurant reservations and theatre tickets.
Brandon Lewis, the former justice secretary, (pictured) says: ‘Despite our fashion credentials, the allure of the French capital has become irresistible for international shoppers’
(Stock Photo) ‘British brands like Mulberry and Burberry resonate with luxury and quintessential British style,’ says Brandon Lewis
The reverse is true in Britain, where our hospitality industry is crying out for pro-growth policies.
Tourism is down 24 per cent since 2019, according to Visit Britain, whilst tourism in France is up by 12.3 per cent in the first quarter of 2023.
So why is Paris outpacing London in this retail race? VAT refunds for non-EU tourists.
Some 41 per cent of all VAT refunds in Europe occur in Paris, according to data from leading payment companies.
VAT, as well as the high cost of doing business through archaic planning laws, a dysfunctional labour market, and a lack of stability and policy ownership in Government posts, is contributing to a bleed to our international standing.
Research from the Adam Smith Institute shows Britain is set to overtake France in population size, but won’t hold on to its economic ranking.
(Stock Photo) Tourism is down 24 per cent since 2019, according to Visit Britain, whilst tourism in France is up by 12.3 per cent in the first quarter of 2023
The Treasury’s current stance on VAT-free shopping has rendered London less attractive. Mulberry closed their Bond Street store purely for the reason that they could no longer access VAT-free shopping.
The repercussions? Wealthy shoppers are turning away from our shores. It’s a missed opportunity, especially in a post-Brexit era where the UK could be harnessing new avenues for growth.
Research exclusively published by the Daily Mail has shown that scrapping the tourist tax would boost the economy by £10billion. It’s time the Treasury listened to this common-sense campaign.
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