‘Door is open’ for U-turn on the tourist tax says Shevaun Haviland
The head of the UK Chambers of Commerce believes the government is slashing the tourist tax after lobbying a key adviser to Rishi Sunak
- Shevaun Haviland agrees ‘100%’ with our campaign to reverse the levy
- Business figures want a refund of VAT-free shopping for foreign visitors
- They say the net benefit to the economy would be greater than the lost tax revenue
Support: the head of the British Chambers of Commerce, Shevaun Haviland
The head of the British business group believes “the door is ajar” for the government to scrap the tourist tax after lobbying a key adviser to Rishi Sunak.
Shevaun Haviland, director-general of the British Chambers of Commerce (BCC), said she agreed “100 per cent” with the Mail’s campaign to reverse the levy and had spoken with the Prime Minister’s assistant, Franck Petitgas, talked about the issue.
More than 320 prominent business people have called for a return of VAT-free shopping for foreign visitors.
They say the net benefit to the economy would be greater than the lost tax revenue. Haviland said of the Mail’s campaign, “We agree with you 100 percent on that.”
The London Chamber of Commerce, part of the BCC’s regional network of groups, has been calling for the tax to be abolished since last year.
Haviland said: “I brought it up again with the Prime Minister’s business adviser Franck a few weeks ago when I saw him at an event, so it’s on their list.
“It looks like an easy win for them and it’s not clear to me yet why they don’t go down that path. He really listens, he is very involved and he has clearly spoken to many stakeholders. I think they’re thinking about it – the door’s ajar.’
Her comments reinforce the sense that a rethink may be underway at the top of the government. Last week, The Mail on Sunday revealed Treasury officials had asked for new data on the economic impact of the tax.
Earlier this year, Chancellor Jeremy Hunt said a U-turn would be too expensive, costing £2 billion a year. But the impact on businesses affected by lost customers did not seem to have been taken into account. That appears to have been acknowledged by officials seeking the new assessment.
A source said that while retailers were known to be affected, “the impact on the wider economy had not been considered.” Opponents say a U-turn would bring a net profit of £350 million. A range of business leaders have supported the Mail’s campaign.
In April, Burberry chairman Gerry Murphy confronted Sunak at a business summit, calling the tax a “spectacular own goal.”