Hundreds of business leaders today call for the return of tax-free shopping for overseas tourists.
In a letter to the Chancellor, some of Britain’s biggest retailers, hotels and restaurants, warn that removing the VAT refund for visitors has been ‘a spectacular own goal.’
Rachel Reeves has been urged to prioritise boosting economic growth at her Budget this month amid fears a tax raid could stifle jobs and investment.
Reinstating the incentive would be a win both for business and the taxpayer, more than 300 firms say, giving the economy ‘an immediate shot in the arm.’
Big names to call for Labour to announce a review of the policy on October 30 include John Lewis, Estee Lauder and Fortnum & Mason.
Business leaders have called on Rachel Reeves to restore VAT free shopping for overseas visitors
More than 300 firms have backed scrapping the ‘tourist tax’ saying it would give the economy ‘an immediate shot in the arm’ (file photo)
Along with fashion house Giorgio Armani, Pernod Ricard and the owner of the Westfield shopping malls, they all argue that the cost of 20 per cent VAT refunds is outweighed by the enormous benefits of encouraging more visitors to Britain.
The UK is now the only country in Europe to not have a rebate scheme, leaving British businesses at a ‘massive global disadvantage’.
Instead of spending money in Britain, tourists are flocking to Paris, Milan and Berlin, leaving these economies to reap the rewards at this country’s expense.
Among the signatories to the letter to Ms Reeves, organised by top hotelier Sir Rocco Forte, are fashion house Kurt Geiger and cosmetics business Charlotte Tilbury.
Prominent figures in the arts world, including Shakespeare’s Globe and the Royal Opera House, have also given their support, as tourists also spend money on cultural attractions.
Ms Reeves says she wants to become the most ‘pro-growth Chancellor’ in British history.
But in the first few months in the job, she has warned of ‘painful’ tax hikes for businesses including on the National Insurance contributions paid by employers. And she has sparked fears that an exodus of high-flyers could leave the UK, taking investment into Britain with them.
This comes as Angela Rayner’s slew of new workers’ rights also poses a headache for firms wanting to hire.
In 2021, then-Chancellor Rishi Sunak abolished tax-free shopping for international visitors.
The tax means shoppers pay 20 per cent more for goods in the UK than in neighbouring countries in Europe.
The Conservatives refused to heed the calls from business to ditch the tax. Back then, the Treasury claimed it was a ‘costly relief which does not benefit the whole of GB equally’.
Dozens of cross-party MPs and peers have already backed the Mail’s ‘Scrap the Tourist Tax’ campaign, including former home secretary Priti Patel, as have firms such as Harrods.
A study by the Centre for Economics and Business Research found Britain’s economy would be £11.1bn a year better off as a result of reinstating VAT refunds, with government coffers boosted by £2.5billion.
And it would have encouraged 2million more people to come to the UK, dispelling the former Tory government’s claims that tourists are not deciding against visiting due to the change.
The pre-Brexit scheme was available only to those outside the EU – such as visitors from the Middle East or the United States. If the levy is scrapped, tourists from the EU would be able to access the tax-free market in the UK for the first time.
‘You now have a chance to show that you are listening to the voice of business and pulling every available lever to promote growth,’ the letter adds. ‘Businesses of all shapes and sizes are calling on you to take action and scrap the tourist tax.’
Then-Chancellor Rishi Sunak abolished tax-free shopping for international visitors in 2021
Arts organisations including the Royal Opera House (pictured) have also given their support, as tourists also spend money on cultural attractions
Campaigners last night said there was an ‘endless’ list of businesses being hindered by the tax and ‘every high street is seeing the impact.’
Insisting it was not just luxury retailers being hurt, they said painful consequences have been felt right across the country, from manufacturers to taxis to local museums and cafes.
‘Rachel Reeves and Labour have promised to prioritise measures that will promote economic growth above all else and scrapping the tourist tax should be top of the list at the Budget,’ said Sir Rocco Forte, chairman of Rocco Forte Hotels.
Anda Rowland, vice-chairman of the King’s tailor, Anderson & Sheppard, said there was ‘clear evidence’ that tourists now spend less time in Britain and spend money elsewhere, which is ‘a threat to growth and to jobs in our sector.’
‘Not one day goes by without a discussion with someone in our community about how damaging this policy is to our future,’ she added.
And Andrew Carter, chief executive of England’s biggest wine producer Chapel Down, said reversing the ‘spectacular own goal’ was a ‘complete no-brainer to supporting economic growth.’
In full: The 300 names calling to scrap the tourist tax
Dear Chancellor,
As business leaders representing the retail, hospitality, travel, tourism and arts sectors, we welcome your Government’s promise to focus on measures that promote economic growth above all else.
After years of lacklustre performance, getting UK plc firing on all cylinders again is vital for prosperity and jobs across the country.
We are writing to ask you to urgently implement one change that would give the economy an immediate shot in the arm.
In 2021, in the aftermath of the pandemic that had hit businesses like ours hard, the then Chancellor Rishi Sunak scrapped the tax-free shopping scheme for tourists that had existed for decades.
This decision came as a shock to those working in our sectors and many of us warned at the time that there would be a heavy price to pay. So it has proved.
What has become known as the ‘tourist tax’ has turned into a spectacular own goal for the UK.
It means the UK is now the only country in Europe that does not offer tax-free shopping to tourists, leaving British businesses at a massive global disadvantage.
This does not just affect a few luxury stores in London’s West End, as some have claimed.
People are increasingly choosing to shop in Paris, Milan and Berlin rather than here because the VAT rebate has gone.
The entire tourist economy is affected, whether that be regional tourist centres or manufacturers down the supply chain, hotels and restaurants, taxis, galleries and museums, cafes… the list is endless. Every high street is seeing the impact.
Analysis by the Centre for Economics and Business Research (Cebr) has concluded that not only would reintroducing a tax-free shopping scheme be affordable, but that the cost of restoring the tax break would be far outweighed by the stimulus in tourist spending in other areas, including hospitality, restaurants, transport and the arts. Visitor numbers could have been two million higher last year if a tax-free shopping scheme had been in place while in terms of the GDP impact, additional expenditure would have equated to an output boost of £11.1 billion.
The Cebr said that restoring the scheme would deliver a significant boost to the public finances because of the amounts spent by tourists across the economy, with a net fiscal gain of £2.5 billion.
The UK would also be able to offer savings to a new market of 500 million EU consumers because of its place outside the EU.
Your predecessor promised last year to ‘look again at the numbers’ and indicated that he hoped that restoring tax-free shopping would prove affordable. But nothing was done.
You now have a chance to show that you are listening to the voice of business and pulling every available lever to promote growth.
Businesses of all shapes and sized are calling on you to take action and scrap the tourist tax.
Senior politicians from every main party, including several former Chancellors and Labour’s Mayor of London Sadiq Khan, agree.
Keeping the tourist tax in place means that all of our businesses are operating with one hand tied behind their backs.
We urge you to take decisive action, scrap the tourist tax and boost economic growth.
Yours sincerely,
The signatories:
Company, Name, Title
Rocco Forte Hotels, Sir Rocco Forte, Chairman
Boodles, Michael Wainwright, Executive Chairman
British Airways, Sean Doyle, CEO & Chairman
British Fashion Council, Caroline Rush, CEO
Chapel Down, Andrew Carter, CEO
Charlotte Tilbury Beauty, Demetra Pinsent, CEO
Church’s, Denni Manzatto, CEO
Claridge’s, Paul Jackson, General Manager
Dorchester Collection, Helen Smith, CEO
Estee Lauder, Sue Fox, President
FarFetch, Stephanie Phair, President
Fortnum & Mason, Tom Athron, CEO
Giorgio Armani, Gerry Fedak, CEO
Gusbourne, Simon Bradbury, Chief Commercial Officer
Hackett, Jeremy Hackett, London Chairman
Heathrow, Fraser Brown, Retail Director
Hirsh London, Sophia Hirsh, Managing Director
Historic Royal Palaces, John Barnes, Chief Executive
John Lewis, Paul Marsden, Head of Branch
Kurt Geiger, Neil Clifford, CEO
Lina Stores, Dan Bennett, Operations Director
Mason & Sons, Elliot Mason, Director
Minotti London, Anke Summerhill, Creative and Managing Director
Mulberry, Andrea Baldo, CEO
Nobu Hotel London, Grant Campbell, General Manager
Norton & Sons, Martin Nicholls, Managing Director
Osprey London, Alexandra Ellisdon, COO
Paul Smith, Sir Paul Smith, Founder
Pernod Ricard, Paul-Andre Vacheron, Director
Red Carnation Hotels, Jonathan Raggett, CEO
Royal Academy of Arts, Axel Ruger, Secretary and Chief Executive
Royal Lancaster London, Sally Beck, General Manager
Royal Opera House, Alex Beard, CEO
Sunspel, Raul Verdicchi, Executive Chairman
The Dorchester, Luca Virgilio, General Manager
The Connaught, Sandeep Bhalla, General Manager
The Athenaeum Hotel&Residences, Joanne Taylor-Stagg, General Manager
The Hippodrome Casino London, Simon Thomas, Executive Chairman
The Ned, Gareth Banner, Group Managing Director
The Peninsula, Rolf Buehlmann, Managing Director
The Watches of Switzerland Group, Brian Duffy, CEO
Walpole, Helen Brocklebank, CEO
10 Greek Street, Luke Wilson, Co-Founder
56 Greek Street, Soho, Jess Smith, Venue Manager
Adam of London, Richie Adam, Company director
Airlines for America, Keith Glatz, Senior Vice President
Alex BEGG Group. Bruno Guillon, CEO
Alexandra Llewellyn, Alexandra Llewellyn, Founder
All is Joy Studios and All is Joy Media, Joel Peter Levack, Co-Founder
Alva, Bernard Donoghue, Director
Anderson & Sheppard, Anda Rowland, Chairman
Annoushka Jewellery, Annoushka Ducas, Founder and Creative Director
Anya Hindmarch, Anya Hindmarch, Founder & CEO
APML Estate, Mike Sadler, Director
Araminta Campbell, Araminta Birse-Stewart, Founder
Argentum, Joy Isaacs, CEO
Artfarm, Ewan Venters, CEO
Asprey International, John Rigas, Executive Chairman
Association of International Retail, Paul Barnes, CEO
Aviator Hotel Hampshire, Adam Skrzypczak, General Manager
Bala Baya & Kapara, Eran Tibi, Chef Founder
Bar Italia, Antony and Luigi Polledri, Owners
Baudoin & Lange, Bo van Langeveld, CEO & Founder
Beasy Soho, Gabriel Iliopoulos, Director
Bellamy’s Restaurant, Gavin Rankin, Managing Director
Bentley and Skinner, Mark Evans, Managing Director
Bentleys London, Tim Bent, Founder
Berry Brothers & Rudd, Emma Fox, CEO
Bespoke Hotels Limited, Robin Sheppard, President
Beulah London, Lavinia Brennan, Director/Co-Founder
Bicester Hotel, Graham Payne, Director
Bicester Village, John Durnin, Business Director
Bocca di Lupo, Jacob Kenedy, Chef Founder
Boisdale Restaurants, Mark Hadsley-Chaplin, Chairman
British Beauty Council, Victoria Brownlie, Chief Policy & Sustainability Officer
British Retail Consortium, Helen Dickinson, CEO
Bubala, Marc Summers, Owner
Budd, Stephen Murphy, Chairman
Burger& Lobster Group, Dino Sura, Managing Director
BusinessLDN, John Dickie, Chief Executive
Cad & The Dandy, James Sleater, Managing Director
Cadogan, Hugh Seaborn, Chief Executive
Hotel Café Royal, Guillaume Marly, Managing Director
Capital Arches Group, Claude Abi-Gerges, Managing Director
Carnegie Club, Gary Gruber, Managing Director
Cassandra Goad, Cassandra Goad, Director
Cedar Capital Partners, Ramsey Mankarious, Chief Executive
Change Group International Plc, Louis Bourgoing, Managing Director
Change Group Retail, Paul Crombie, Managing Director
Cheaney Shoes, Jonathan Church, Joint Managing Director
Chelsea Physic Garden, Sue Medway, Director
Chew On This Group, Ellen Chew, Director
Chinatown Stakeholders, Christine Yau Vice, Chair
Clermont Hotel Management, Gavin Taylor, Chief Executive Officer
Como Holdings, Chris Roberts, Chairman
Constant Leisure, Costas Constantinou, Co-Owner& Director
Cordings, Noll Uloth, Joint Owner
Cosmetic, Toiletry and Perfumery Association (CPTA), Dr. Emma Meredith, Director-General
Criterion Hospitality, Halima Aziz, Head of Hotels
Cromlix, Barry Makin, General Manager
Cuts Soho, Andrew Daniel, Owner/Manager
D.R Harris & Co, Julian Moore, Managing Director
Dargie Lewis Designs, Lavinia Dargie, Founder & Interior Designer
Deakin & Francis, Henry Deakin, Managing Director
Dege & Skinner, William Skinner, Managing Director
Deirdre Dyson, Lady Deirdre Dyson, Owner
Denman & Goddard, David J Cook, CEO
Derek Rose, Sacha Rose, CEO
Design Centre London, Claire German, CEO
Dorsett Hospitality International, Mark Gallagher, Area General Manager
Duke + Dexter, Archie Hewlett, CEO/Founder
DVO, Jackie Clode-Dickens, Owner
Edinburgh Hotels Association, Neil Ellis, Chairman
Edward Green, Hilary Freeman, Managing Director
Edward Sexton, Dominic Sebag-Montefiore, Creative Director
Edwardian Hotels London, Inderneel Singh, CEO
El Pastor, Crispin Somerville, Managing Director
Elizabeth Gage, Elizabeth Gage & Joanne Rees, Owner & Managing Director
Emerald and Tiger, Jasmin Harsono, Director & Founder
Emma Jane Knight, Emma Jane Knight, Founder & Creative Director
Emma Willis, Emma Willis, Founder and CEO
Empire Casino, Richard Smith, Venue Director
EPOK, Prudence Gibson, Founder
Essential Edinburgh BID, Roddy Smith, CEO
ExCel London, Jeremy Rees, CEO
F Hinds, Andrew Hinds, Chairman
Fabergé, Antony Lindsay, CEO
Fairfax and Favor, Felix Favor Parker, Founding Director
Fedro Gaudenzi, Fedro Gaudenzi, Founder and Director
Fiona Finds, Fiona Dreesman, Founder
Fleming & Howland, Paul Fleming, Director
Floris London, Edward Bodenham, Director
FMS, Irene Mateides, Publishing Director
Fox Soho Maintenance, Barry Fox, Director
Fragrance Group, Jason Parry, Multi-Site General Manager
Freedom, Soho Residence & Archer Street, Siobhan Magill, Director & Co owner
Frieze, Matthew Slotover, Co-Founder
Fruity Booty, Hattie Tennant, CEO
G.Ettinger, Robert Ettinger, CEO
Garrard & Co, Joanne Milner, CEO
Gemfields, Sean Gilbertson, CEO
Genting Casinos, Paul Willcock, President and Chief Operating Officer
Georgian House Hotel, Serena von der Heyde, Managing Partner
Global Blue UK, Derrick Hardman, Managing Director
Gordon And MacPhail, Philip White, CEO
Grosvenor House Suites, Andrew Henning, General Manager
GvE&Co, Jonathan Docherty, Director
Halcyon Days and The Caverswall China Company, Pamela Harper, Chairman & CEO
Hanover Healthfoods, John Mckee, Owner
Heals, Hamish Mansbridge, CEO
Heart of London Business Alliance, Ros Morgan, Chief Executive
Heirlooms, Ruth Douglas, Managing Director
Henry Poole, Simon Cundey, Managing Director
Henson’s Bar & Social, Francesco Delfino, Business Partner
Hill House Interiors, Helen Bygraves, Founder/Director
Holland & Sherry, Lindsay A Taylor, Global Sales Director
Home House Collection, Andrew Richardson, CEO
Hoppers Soho, Tanya Wilderspin, General Manager
Hospitality Source, Farida Dungarwalla, Director / Co Owner
House of Bruar, Patrick Birkbeck, Managing Director
Huntsman Savile Row, Taj Phull, Managing Director
Hyatt Hotels Corporation, Arnaud de Saint-Exupéry, Area Vice President / General Manager
Iconic Luxury Hotels, Andrew Stembridge, Executive Director
Inception Ventures Group, Ellie Kwong, Group Compliance, Audit & Training Manager
Instant Karma Retail, Chandra Goyal, Managing Director
Italian Bear Chocolate, Andrea Alinovi, Managing Director
Jeremy King Restaurants, Jeremy King, Proprietor & CEO
Jo Hansford, Joanna Hansford, Managing Director
Joanna Wood Limited, Joanna Wood, Managing Director
John Lobb, William Lobb, Director
John Smedley, Ian Maclean, Managing Director
Julia Carrick Luxury Consultancy Ltd, Julia Carrick, CEO
K West Hotel & Spa, Florian Broemel, General Manager
Kelly Richardson, Kelly Kroketa, Director
Kiki Mcdonough, Kiki Mcdonough, Founder and Creative Director
Kricket, Rik Campbell, Founder/Director
Lalage Beaumont, Lalage Beaumont, Owner
Lalique Limited, Frederick Fischer, Managing Director
Last Drop Distillers, Rebecca Jago, Managing Director
Laurent Perrier, Adam Guy, Managing Director
Lewis Wark, Martyn Lewis, Director
Liberty London, Adil M-Khan, CEO
Lisa Franklin, Lisa Franklin, CEO
Lobos Meat and Tapas, Ruben Maza, Director
Lock & Co. Hatters, Ben Dalrymple, Managing Director
London Property Alliance, Charles Begley, Chief Executive
Loquet London, Min Lee, Commercial Director
Malone Souliers, Steven Hope, CEO
Manicomio Restaurant Group, Ninai Zarach, Director
Manolo Blahnik, Kristina Blahnik, CEO
McRostie of Glasgow, Colin & Kareen Campbell, Director
Metaverse Learning, Jason Holt, CEO
Miller Harris, Jon Graham, CEO
Monpure, Nate Bigger, CEO
Montague Ede Bespoke Tailoring, Antonia Ede, Owner
Morley Stores, Bernard Dreesman, Chairman
My Place Soho, Sam Maqedonci, Director
N.Peal, Adam Holdsworth, CEO
National Army Musuem, Justin Maciejewski, Director
Neals Yard Remedies, Anabel Kindersley, Co-Owner
New West End Company, Dee Corsi, Chief Executive
NFTEE’s, Orlando Gaul, Director
No Escape, Purgatory Bar, Darrell & Kristina Johnston, Owners
Noteworthy, Nicola Butler, Managing Director
NRBY Clothing, Jo Hooper, CEO
Oliver Burns, Sharon Lillywhite, Founder
Outlet Residential, Kinga Parker, Director
Pan Pacific London, Anne Golden, Regional Vice President
Panter & Hall Gallery, Matthew Hall, Director
Pepa London, Mike Hoare, Director
Percy & Reed, Shannon de Boissard, Founder and CEO
Peter Reed, Sean Clayton, Managing Director
Philip Mould & Company, Philip Mould, Director
Pickett, Trevor Pickett, CEO
Planet, Gordon Clark, Senior Director
Pphe Hotel Group, Daniel Pedreschi, Executive Vice President Operations UK
Pragnell, Charlie Pragnell, Chairman & Owner
Prosegur Change, Sacha Alexander Zackariya, CEO
Q- Park, Sarosh R. Mehta, Business Manager
Quo Vadis, Jeremy Lee, Chef Proprietor
Rachel Vosper, Rachel Vosper, Managing Director
Richard Anderson, Brian Lishak, Director & Company Secretary
Richard James Savile Row, Sean Dixon, Founder & Managing Director
Richard Ogden, Richard Ogden, Executive Director
Rothes Glen, Damian Riley-Smith, Owner
ROX – Diamonds & Thrills, Kyron Keogh, Co-Founder & Managing Director
Running Hare Restaurants, David Taylor, CEO & Founder
Sanderson Design Group, Lisa Montague, Group Chief Financial Officer
Sarah Haran, Sarah Haran, Founder
Scott Dun Private, Jules Maury, Head
Seiko UK, David Edwards, Managing Director
Shakespeare’s Globe, Stella Kanu, CEO
Simmons Bars, Nick Campbell, Owner
Simply Pleasure, Tom Clark, National Retail Manager
Simpsons Wine, Charles Simpson, Co-founder
Singapulah, Jay Sim, Business Development Director
Sir Richard Sutton Limited, William Gibbs, Hotel Director
Society Of London Theatre, Claire Walker & Hannah Essex, Co-CEOs
Soho Bars & Clubs, Orinta Kilaite, Owner
Soho Business Alliance, Jo May, Corporate Secretary
Soho Estates, John James, Managing Director
Soho Live Music Club, George Hudson, Founder
Soho Maintenance, Mark Abraham, Director
Soho Solutions, Michael Fishlock, Director
Somlo Antiques London, George Somlo, Director
Sophie’s Soho & Jack Solomons Club, Rupert Power, Managing Director
Stephen Webster, Stephen Webster, Founder
Sterling Studios, Fiona Sutclifffe, Owner
Super 8 Restaurants, Brian Hannon, Owner & Director
Susannah Lovis Jewellers, Susannah Lovis, Owner
Suzi Searle Interiors, Suzi Searle, Founder
Swaine London, Carine de Koenigswarter, CEO
Swatch Group, Andrea Nunziata, Brand Manager
Sybyl Colefax & John Fowler, Wendy Nicholls, Chairman
Temperley Holdings, Luca Donnini, CEO
The Arts Theatre Club, Maria Costantinou, Co-Owner
The Association of Leading Visitor Attractions, Bernard Donoghue, Director
The Berkeley & The Emory Maybourne, Knut Wylde, General Manager
The British Emporium, Adrian North, Founder & Managing Director
The Deck London, Daisy Knatchbull, Ceo and Founder
The Dune Group, Daniel Rubin, Founder & Chairman
The Entertainer, Andrew Murphy Group, CEO
The French House Lesley Lewis, Owner
The Hari, Francesco Sardelli, General Manager
The Katiroll Company, Dilip Patel, Manager
The Lakes Distillery, James Pennefather, CEO
The Leonard Hotel, Paul Sehgal, Director
The Little Door & Co, Ronald Holmberg, Operations Director
The Sausage Project, Hamilton Gaul, Director
The Savoy London, Franck X Arnold, Regional Vice President and Managing Director
The Thin White Duke, Sasha Almonte, Co- Founder
The Wolseley Hospitality Group, Baton Berisha, CEO
Theo Fennell Limited, Theo Fennell, Founder
Thirst Bar, Al Thompson, Owner
Thom Sweeney, Thom Whiddett, Co- Founder
Topnotch Gyms, Stuart Rosenberg, Director
Trotters Childrenswear, Richard Ross, Chairman and Co Founder
Trunk Clothiers, Mats Klingberg, Founder& Managing Director
Turnball & Asser, Iiaria Niccolini, Director
Tusting Leathergoods, Alistair Tusting, Managing Director
UK Fashion & Textile Association, Adam Mansell, CEO
UKDSA, Michael Kill, CEO
Ukinbound, Joss Croft, Chief Executive
Unibail-Rodamco-Westfield, Scott Parsons, Chief Operating Officer
UK Unique Yacht Wrapping, Jacob Cameron, Director
V & P Fox Locksmiths, Oliver Lincoln, Managing Director
Value Retail, James Lambert, Deputy Chairman
Vasco & Piero’s Pavilion, Paul Matteucci, Director
Vintage House, Tony McGeever, General Manager
Visit Greenwich, Barrie Kelly, CEO
W Hotel, Ken Millar, General Manager
Wafflemeister, Rikos Leong-Son, CEO
Wartski, Kieran McCarthy, Joint Managing Director
Wedgwood, Christian Bachler, Executive Vice President
White Rabbit Projects, Eadaoin Mcdonagh, COO
William & Son, William R Asprey, Founder & Chairmain
Yard O Led, Giles English, Custodian
Your place hotel, Andrew Miles, Director
Zembrano’s Bar Soho, Don Cameron, Director
Zima Restaurant, Lukas Rackauskas, Director
