Calls for Government to ditch ‘tourist tax’ from West End shops who say a lack of VAT-free shopping is stopping customers from coming back after the pandemic
- The New West End Company said London shops are losing out to European rivals
- It has called for the Government to reintroduce VAT-free shopping across Britain
Ministers have been urged to scrap a ‘tourist tax’ by business group leaders, who say London’s prime shopping district is losing out to European rivals.
The New West End Company, which represents 600 firms across Bond Street, Oxford Street and Regent Street, have warned that international travellers are not flocking back to the capital at the same rate as they are returning to Paris and Milan after VAT-free shopping for overseas visitors was ditched two years ago.
It says allowing foreign visitors to reclaim the 20 per cent tax on their shopping would make London and the rest of the UK more enticing.
Their report yesterday said: ‘To ensure that the West End is able to compete with its European rivals and realise its potential to thrive, NWEC is calling on the Government to build on the resilience the district has shown and implement valuable growth measures including the reintroduction of tax-free shopping in the UK.’
Dee Corsi, chief executive of NWEC, said the West End has an ‘eager international audience with cash to spend waiting in the wings’.
The New West End Company, which represents 600 firms across Bond Street, Oxford Street and Regent Street, have warned that international travellers are not flocking back to the capital at the same rate as they are returning to Paris and Milan after VAT-free shopping for overseas visitors was ditched two years ago. Pictured: Oxford Street, London
It says allowing foreign visitors to reclaim the 20 per cent tax on their shopping would make London and the rest of the UK more enticing. Pictured: Regent Street, London
It comes after designer brands including Kurt Geiger and Burberry criticised the policy, claiming international shoppers are being driven away.
VAT-free shopping was scrapped in January 2021 by Rishi Sunak, who was chancellor at the time.
Former chancellor Kwasi Kwarteng announced he would revive the incentive in his September ‘mini-Budget’ – but this was quickly ditched by successor Jeremy Hunt.
Despite pleas from businesses attempting to recover from the pandemic, Mr Hunt said the reversal would save £2billion.
But a report from Oxford Economics claimed restoring the policy would boost the Treasury coffers by £350million a year, driving an extra 1.6million visitors to the UK.
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