Luxury retailers blast chancellor’s decision not to reinstate VAT-free shopping

Luxury retailers lament ‘missed opportunity’ to lure tourists away from rivals by restoring VAT-free shopping

Luxury retailers lamented a ‘missed opportunity’ to attract tourists to the UK.

High-end names including Harrods and Burberry wanted the reinstatement of tax-free shopping for international tourists, which ended in January 2021.

But the policy was not discussed.

Losses: High-end names including Harrods and Burberry had called on the Chancellor to reinstate tax-free shopping for international tourists, which ended in January 2021

According to Global Blue, which specializes in issuing VAT refunds, tourist spending in Britain has only reached two-thirds of its pre-pandemic level.

Italy and Spain are much closer to a return to 2019 tourist spending levels, and France is spending more.

Steve Medway, at the Knightsbridge and King’s Road Partnerships in London, said it was ‘a missed opportunity to reaffirm Britain’s pre-eminent status as the international retail destination of choice’.

New West End Company CEO Dee Corsi said Jeremy Hunt “missed an opportunity to accelerate growth.”

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