In a united effort, 350 business leaders from various sectors, including retail, hospitality, arts, and tourism, have signed an open letter addressed to Chancellor Jeremy Hunt, calling for the reintroduction of tax-free shopping.
Prominent figures from well-known companies such as Mulberry, British Fashion Council, Alexander McQueen, Liberty London, Victoria Beckham, Marks & Spencer, and Fenwick, among others, have put their names on the letter, highlighting the urgent need to bring back the VAT-free shopping scheme.
The letter emphasises the negative impact caused by the decision to end the tax-free shopping scheme in 2021, particularly the significant decline in spending by international visitors at some of the UK’s most popular tourist destinations. The Treasury claims that this move is saving the taxpayer two billion pounds annually, but the signatories argue that this assessment is flawed and misleading.
One poignant example cited in the letter is the closure of Mulberry’s flagship store on Bond Street, which the company attributes directly to the loss of tax-free shopping benefits.
Notably, every EU country now offers tax-free shopping, making the UK stand out as the only exception, resulting in tourists having to pay 20 per cent more for the same goods in the UK compared to other countries. This has also led UK residents to take advantage of tax-free shopping in Europe, contributing to a loss of £ 450 million from UK high streets.
