CITY WHISPERS: Rishi’s tourist tax will be a thing of the past, baby

David Pemsel, chairman of the British Fashion Council, has immediately revived the campaign to abolish tourist tax now that there is a new government.

Rishi Sunak abolished VAT-free shopping as Chancellor and, to the dismay of some Conservative MPs, refused to budge on the point as Prime Minister.

In a speech last week, Pemsel drew the attention of the new Minister of Economic Affairs, Jonathan Reynolds, to tax.

Out of fashion? Rishi Sunak scrapped VAT-free shopping as Chancellor

It is rumored that store managers who met with Reynolds also brought up the subject.

Reynolds won’t make the decision. Tax matters fall under the remit of the Treasury. But he could be a powerful advocate for businesses who feel sidelined by Sunak.

There is ample evidence that abolishing the tax would boost the economy, as wealthy tourists also spend a lot of money on restaurants, hotels and entertainment.

The BFC says it looks forward to discussing the issue with ministers soon.

It appears Reynolds hasn’t heard the last of it.

Former BT boss can afford to go all out

In the money: Former BT boss Gavin Patterson can afford to spend big

In the money: Former BT boss Gavin Patterson can afford to spend big

Former BT boss Gavin Patterson was on a spending spree this weekend after selling almost £1m worth of shares in consultancy Elixirr to the staff trust.

Patterson, 56, has been chairman of the company since 2019. He still owns £2.3m worth of Elixirr shares – in addition to earning fees from an impressive array of other directorships at companies including Ocado, Kahoot and Kraken. Good work if you can get it.

Turbulent week for UK mining

It has been a turbulent week for British mining. Whitehaven’s future was thrown into doubt after the new government said the Cumbrian coal mine should not have been given planning permission by Michael Gove in 2022.

It is unclear whether environmental activists will now have to take any legal action at all.

But rising tin prices made Cornish Metals’ plan to revive the South Crofty mine seem like a better idea.

Tin is used in solar panels and is also called the ‘forgotten foot soldier’ ​​of the energy transition, because reserves are decreasing. Prices are rising.

Perhaps here in mining, people look more to the future than to the past.

Slightly slimmer cats

As loyal readers know, The Mail on Sunday keeps a close eye on the City’s wealthy journalists.

But this week there are two slightly slimmer cats: Miles Roberts (DS Smith) and Nickyl Raithatha (Moonpig).

Roberts took home £1.3m last year, his lowest salary in 13 years at the helm of the packaging giant after missing bonus targets. Raithatha also took home £1.3m at greetings card group Moonpig.

However, this was down from just over £6.7m the year before, boosted by a hefty payout related to Moonpig’s IPO.

Ouch.

Contributor: Emily Hawkins

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