London Daily

Focus on the big picture.
Thursday, Jun 08, 2023

‘Scrap the tourist tax that’s harming London’,  say business leaders

‘Scrap the tourist tax that’s harming London’, say business leaders

London businesses say time is of the essence if the capital is to avoid long-term harm
Rishi Sunak has been urged by business leaders to take the “no-brainer” decision to scrap his tourist tax on foreign shoppers before irreparable damage is done to London’s global reputation.

There is growing alarm that over the first summer peak holiday season without any Covid restrictions millions of visitors will return to their home countries with the message that the capital is too expensive compared with rival destinations such as Paris, Milan or Madrid.

On Wednsday, the boss of luxury retailer Watches of Switzerland added his voice to the chorus of pleas calling for a change of heart from the Government “the sooner the better”.

Brian Duffy told the Evening Standard: “Our view is that it is inevitable the decision will be reversed, the numbers are compelling in showing the benefit VAT-free shopping can bring. Britain has long been a favourite and iconic destination to come and shop, but we have now made it more difficult for ourselves to attract tourists.

“The sooner the better for bringing back VAT-free shopping. We would like to see a proper independent review conducted, and for the Government to do what is right for UK PLC.”

The Evening Standard led the campaign of opposition to the axing of VAT-free shopping by Mr Sunak when he was chancellor in January 2021.

The move immediately made it 20 per cent more expensive for foreign tourists to shop in London because they could not reclaim the VAT on the purchases they take home as they leave the UK.

London businesses fear billions of pounds of spending is being lost because tourists from Asia, America and the Middle East in particular are opting to do their shopping in other European cities that still have the perk.

Shoppers from EU countries would also have been entitled to the VAT deduction here after Brexit — making London a very attractive cheap shopping destination for them.

Chris Hayward, policy chairman at the City of London Corporation, said: “Re-introducing VAT-free shopping for London’s tourists is an absolute no-brainer.

“Cutting tourists’ tax on shopping will drive footfall, jobs, and growth, attract global visitors, and boost the capital’s recovery from the pandemic. With economic growth in the doldrums the Government must act quickly.”

Dozens of leading business chiefs in London’s tourism and retail sectors, including the bosses of British Airways, Mulberry, the Royal Opera House and Fortnum & Mason last month wrote an open letter to Chancellor Jeremy Hunt describing the policy as “a spectacular own goal”.

But so far the Treasury and Number 10 have refused to accept the case for a U-turn, arguing that it would cost £2 billion in lost tax revenue, although studies have shown that this would be more than outweighed by a £4.1 billion boost to GDP through extra tourist shopping. There were the first signs this week that the Government might be prepared to consider a change of heart when the Prime Minister’s official spokesman said: “We are always happy to listen to the sector about their concerns and obviously we will respond accordingly.”

But London businesses say time is of the essence if the capital is to avoid long-term harm.

Dee Corsi, chief executive of business group New West End Company, which represents traders in Oxford Street, Bond Street and Regent Street, said: “We have campaigned tirelessly for a reversal of the decision to end tax-free shopping, so we welcome the Treasury’s request for data that we know will prove this is an economic own-goal.

“According to the Oxford Economics forecast, the last six months will have cost the UK £1.5 billion in missed international sales. International visitors are now realising that the UK is 20 per cent more expensive than other European cities, and West End businesses are suffering the consequences.

“Shopping is a key driver in deciding which city break to go on. Ever since tax-free shopping was abolished, international visitors have been returning home from our shores less likely to come back, and more likely to head to France or Spain next time.

“The latest data shows a genuine behaviour change, spend is being diverted to other European cities and the situation is worsening. Our message to the Prime Minister is clear — we need to restore tax-free shopping as quickly as possible. And he should start by commissioning an independent report into the direct impact this decision has had on the entire tourism ecosystem.”

Richard Burge, chief executive of the London Chamber of Commerce and Industry, said: “The economic cost of the scheme is minute compared to the overall economic gain of increased numbers of tourists spending more money in the UK, especially in our capital. VAT-free shopping is a no-brainer for London’s prosperity, and the Government must reintroduce it immediately to avoid driving tourists away from London.”

John Dickie, Chief Executive at BusinessLDN, said: “Bringing back VAT-free shopping would attract international visitors back to the UK and boost spending in sectors hit hard by the pandemic and strikes. By doing so, it would strongly support growth, generate £4.1 billion GVA annually, create 78,000 jobs and increase £350 million in tax revenues for the Exchequer every year.

“The Prime Minister must listen to businesses and restore VAT-free shopping to deliver on his pledge to grow the economy.”

Adam Hug, leader of Westminster City Council, said: “The West End is a major attraction for overseas visitors and by not offering VAT free shopping, we are effectively signposting them to go and spend their money in other parts of the world.

“The latest research demonstrates that reintroducing tax-free shopping would lead to a growth of around £4.1 billion in gross domestic product and support 78,000 jobs. It would also add around £350 million a year to the public purse. This is a win-win for the Chancellor; it would be economically illiterate not to do it.

“If we are to fully recover from the effects of the pandemic and return to our previous tourism levels the Government must acknowledge the importance of our international visitors. I want to see the reinstatement of tax-free shopping for all overseas visitors, to create revenue for the exchequer, ensure the UK’s global competitiveness and support local jobs. The Evening Standard’s campaign is a welcome and powerful voice to support that.”
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

London Daily
Close
0:00
0:00
The Fed fixing the economy
You Are So Beautiful
Corporations standing up for “LGDP-LGT-LBG-LGBTQ2+ kids” during ‘Pride Month’ be like:
Postmodern Jukebox European Tour Version
US and European Intelligence Agencies Uncover Evidence of Ukrainian Role in Terror Attack on Nord Stream Pipeline
An old French tune (by Georges Brassens) Pomplamoose ft. John Schroeder
Prince Harry to Testify in Phone Hacking Case Against Mirror Group Newspapers
Sattahip Motor Show 20
The driver has been described by authorities as a 21-year-old woman from Tallahassee
SONATE AU CLAIR DE LUNE - Moonlight sonata
Joe Biden falls at the Air Force Graduation
A kiss to build a dream on
America's Got Talent…
Wonderful Tonight - Eric Clapton (Boyce Avenue acoustic cover)
Nvidia Joins Tech Giants as First Chipmaker to Reach $1 Trillion Valuation
Mean Blues
Drone Attack on Moscow's Wealthiest Neighborhoods Suspected to be Launched by Ukraine
La Chansonnette
UK Prime Minister Rishi Sunak to Hold Power Talks with President Biden in Washington
Pattaya Addicts
AI ‘extinction’ should be same priority as nuclear war – experts
Franz Liszt - Liebestraum - Love Dream
Prominent Hacker Forum RaidForums Suffers Substantial Data Breach
Dream a little dream of me
Climate cultists thought they had sabotaged another beautiful event — then the cameraman had his revenge.
Unchained Melody sung like you've NEVER heard!
Nvidia CEO Huang says firms, individuals without AI expertise will be left behind
Dave Brubeck - Take Five
WPP Revolutionizes Advertising with NVIDIA's AI Powerhouse
Édith Piaf - Non, Je Ne Regrette Rien (Sofie)
Two US Employees Fired For Chasing Robbers Out Of Store As They Broke ''Company Policy''
Rondo Alla Turca
Pfizer, the EU, and disappearing ink - Smoke, Mirrors, and the Billion-Dose Pfizer Vaccine Deal: EU's 'Open Secret
Kiss of fire
Actor Tom Hanks told Harvard University graduates to be superheroes in their defense of truth and American ideals, and to resist those who twist the truth for their own gain
Tom Jones - I´ll Never Fall In Love Again 1967, 1989, 2001
The Sussexes' Royal Rebound: Could Harry and Meghan Markle Return to the UK?
Israel Cachao López - Guajira Clásica
A provocative study suggests: Left-Wing Extremism and its Unsettling Connection to Psychopathy and Narcissism
Edward Maya - Stereo Love (feat. Vika Jigulina) (Extended Mix)
France Arrests 10 on Suspicion of Failing to Respond in Time to Migrant Drowning
Strauss - Radetzky March - Karajan
Neuralink Receives FDA Approval for First-in-Human Clinical Study
La vie en rose
Ukrainian Intelligence Official Admits to Assassination Attempts on Putin
The Temptations - My Girl (Smokey Robinson Tribute) 2006 Kennedy Cent
WATCH THIS: democracy in Russia is so bad!
Orlando Cachaito Lopez Redencion
Ed Davey: It is possible for a woman to have a penis
Edith Piaf - NON, JE NE REGRETTE RIEN
Bernard Arnault Loses $11.2 Billion in One Day as Investors Fear Slowdown in US Growth Will Reduce Demand for Luxury Products
RADETZKY MARCH-2008-Wien, New Year Concert
Russian’s Wagner Group leader: “I am not a chef, I am a butcher. Russia is in danger of a revolution like in 1917.”
Only you (And you alone)
TikTok Sues Montana Over Law Banning the App
Strangers In The Night
Ron DeSantis Jumps Into 2024 Presidential Race, Setting Up Showdown With Trump
Charles Aznavour - La Boheme
Steve Jobs introducing Apple's iPhone, exactly 16 years ago.
Summer time
Banking Behemoth vs Ex-Boss: The PMorgan-Epstein Entanglement
Sting and Stevie Wonder - Fragile (from Sting's 60th birthday concert)
China overtakes Japan as world's top car exporter
Aux Champs Elysees
Banking Behemoth vs Ex-Boss: The PMorgan-Epstein Entanglement
Stand By Me - Ben E. King (Boyce Avenue acoustic cover)
Elon Musk's SpaceX and Italy's Unipol join forces to help Italians hit by flooding
La Mer (Beyond the Sea) – Avalon Jazz Band
Talks between US House Republicans and President Biden's Democratic administration on raising the federal government's $31.4tn debt ceiling have paused
She
Biden Administration Eyeing High-Profile Visits to China: The Biden Administration is heating things up by looking into setting up a series of top-level visits to Beijing by top officials in the coming months
Nathalie Song by Enzo Petrachi Stjepan Hauser Cello
New evidence in special counsel probe may undercut Trump’s claim documents he took were automatically declassified
Shape of My Heart - Sting (Boyce Avenue acoustic cover)
A French court of appeals confirmed former President Nicolas Sarkozy's three-year jail term for corruption and influence peddling
Radiohead - Creep
Debt Ceiling Crises Have Unleashed Political Chaos
Quizás,Quizás,Quizás - Andrea Bocelli - Jennifer Lopez
Weibao Wang, a former software engineer at Apple, was charged with stealing trade secrets related to autonomous systems, including self-driving cars
Perhaps, Perhaps, Perhaps - Multi-Couples
Mobile phone giant Vodafone to cut 11,000 jobs globally over three years as new boss says its performance not good enough
Pentatonix Havana
Elon Musk compares George Soros to Magneto, the supervillain from the Marvel Comics series.
Paula Cole - Autumn Leaves
Warren Buffett Sells TSMC Shares Over Concerns About Taiwan's Stability
Oscar Benton Bensonhurst Blues
New Study Finds That Secondary Bacterial Pneumonia Is a Major Cause of Death in COVID-19 Patients Who Require Ventilator Assistance
OH NANANA vs ABUSADAMENTE
Vienna: Passenger Plays Hitler Speeches on Train, Causes Panic
Nina Simone - ”I Put A Spell On You”. Vezi aici cum cântă Jeremy Ragsd
Remarkable video from our Fox drone team
NIGHTWISH - The Phantom Of The Opera
The official tapes of Trump's deposition in the E. Jean Carroll battery (rape) and defamation case have been released.
Motorshow 2016 Tanjay Negros Oriental
Here is the full video that the media are purposely not sharing
Monica Bellucci - Ti Amo
King Charles III being crowned.
Michael Jackson - Billie Jean Milena The Voice France 2018
Newly released video of Donald Trump’s rape trial deposition:
Michael Buble (Help Me Make It Through The Night) feat Loren Allred
Memories Canon In D - Maroon 5 (Boyce Avenue piano acoustic cover)
Matteo Simoni - Marina
Maroon 5 - One More Night
Maroon 5 - Memories
Mark Knopfler - Brothers In Arms (Berlin 2007 Live)
Mark Knopfler & Emmylou Harris - Romeo And Juliet (Real Live Roadrunni
Marina, Marina - The LUCKY DUCKIES intimist live concert at Guimarães
Major Lazer & DJ Snake – Lean On Mauranne The Voice France 2016
Love Theme from Romeo and Juliet - Joslin - Henri Mancini, Nino Rota
LoLa & Hauser - Love Story
Linkin Park Jay-Z - Numb Encore (Live 8 2005)
Hallelujah Mennel Ibtissem, The Voice France Leonard Cohen
Leonard Cohen - Dance Me to the End of Love
Leonard Cohen & Natasha Rostova - Dance me to the end of love
La casa de papel - Bella Ciao
La Camisa Negra
L'italiano (Toto Cutugno) - The Gypsy Queens
Juanes - La Camisa Negra
Jonathan and Charlotte - Britain's Got Talent 2012 Live Semi Final - U
John Powell - Assassin's Tango
Joe Cocker - You Can Leave Your Hat On (LIVE in Dortmund)
Joe Cocker - Unchain My Heart 2002 Live
Joe Cocker - A Whiter Shade Of Pale
Jay Z & Alicia Keys - Empire State of Mind LIVE
Jason Mraz - Im Yours (live)
Jarrod Radnich - Bohemian Rhapsody - Virtuosic Piano Solo
James Blunt - You're Beautiful
James Blunt - You're Beautiful & Bonfire Heart (Live at The Nobel Peac)
If You Go Away - Helen Merrill & Stan Getz (Tribute to Virna Lisi)
I'LL BE MISSING YOU
I Say a Little Prayer
Hotel California ( Eagles ) 1994 Live
Historia de un amor - Luz Casal. Vezi interpretarea Biancăi Sumanariu
Here Comes The Sun - The Beatles (Boyce Avenue acoustic cover) on Spot
Heart - Stairway to Heaven Led Zeppelin - Kennedy Center Honors
HAVANA by Camila Cabello Zumba Pre Cooldown TML Crew Kramer Pastra
HAUSER and Señorita - I Will Always Love You
HAUSER - Waka Waka
HAUSER - Sway
HAUSER - Lambada
HAUSER - Historia de un Amor
HAUSER - Despacito
Great Pretender
Georgia May Foote & Giovanni Pernice Samba to 'Volare' - Strictly Come
Gary Moore - Still Got The Blues
GIPSY KINGS VOLARE Penelope Cruz
Fugees - Killing Me Softly With His Song
French Latino - Historia de un Amor
For A Few Dollars More The Danish National Symphony Orchestra (Live)
Flashdance • What a Feeling • Irene Cara
Filip Rudan - “Someone You Loved” Audicija 4 The Voice Hrvatska Sez
Eric Clapton - Wonderful Tonight
Enya - Only Time
Enrique Iglesias - Bailando (English Version) ft. Sean Paul
Enrique Iglesias - Bailamos
Elena Yerevan Historia de un amor
Ed Sheeran - Shape of You (Official Music Video)
Ed Sheeran - Perfect Symphony [with Andrea Bocelli]
Ed Sheeran - Perfect (Official Music Video)
Easy On Me - Adele (Boyce Avenue 90’s style piano acoustic cover) on S
ERA - Ameno
ELENA YEREVAN- Cancion Del Mariachi-IN STUDIO-2017 DPR
Dust In The Wind - Kansas (Boyce Avenue acoustic cover)
Don't Let Me Be Misunderstood
Despacito x Shape Of You - Pentatonix
Deep Purple - Child In Time - Live (1970)
David Foster When A Man Loves A WomanIt's A Mans World (SealMichael Bo
Dance me to the end of Love ( Pi-Air Design )
Coolio - Gangsta's Paradise (feat. L.V.) [Official Music Video]
Conquest Of Paradise (Vangelis), played on Böhm Emporio organ
Cielito Lindo
Chico & The Gypsies - Bamboleo
Canción Del Mariachi - Antonio Banderas, Los Lobos • Desperado
Camila Cabello - Havana (Audio) ft. Young Thug
Camila Cabello - Havana ( cover by J.Fla )
California Dreamin' - The Mamas & The Papas José Feliciano (Boyce Ave
Buster Benton - Money Is The Name of The Game
Hallelujah Pentatonix
Bobby McFerrin - Don't Worry Be Happy (Official Music Video)
Bob Dylan - Knockin' On Heaven's Door Emilia The Voice Kids France
Besame Mucho - Cesaria Evora
Ben E. King - Stand by Me Sax Cover Alexandra Ilieva Thomann
Bella Ciao
Bella Ciao - INSTRUMENTAL
Beautiful in White x Canon in D (Piano Cover by Riyandi Kusuma)
Bad Romance - Vintage 1920's Gatsby Style Lady Gaga Cover ft. Ariana Savalas & Sarah Reich(1)
BELLA CIAO 2020 - KARAOKE ITALIANO
BAMBOLEO - Gipsy Kings • Antonio Banderas, Katya Virshilas
BAILANDO (original)
Awesome Ukrainian yodeler - SOFIA SHKIDCHENKO (with English subtitles)
Avicii - The Nights
Atom - The Great Gig in the Sky
Aretha Franklin - (You Make Me Feel Like) A Natural Woman (Official Ly
Antonio Banderas - Cancion del Mariachi (Desperado)
André Rieu - Zorba's Dance (Sirtaki)
André Rieu - Can't Help Falling In Love
André Rieu & Mirusia - Ave Maria
Andrew Reyes Elton John - Don't Let The Sun Go Down The Voice 2020 (
Andreas Kümmert Whiter Shade Of Pale The Voice of Germany 2013 Showd
And I Love You So
All About That Bass - Postmodern Jukebox European Tour Version
Alan Walker - Faded (Piano Cover)
Ain't No Sunshine -- Bill Withers (cover by Canen 12 y.o.)
African music
Adriana Vidović - “Creep” Audicija 4 The Voice Hrvatska Sezona 3
Adriana Vidović - “Believer” Nokaut 3 The Voice Hrvatska Sezona 3
A Fistful of Dollars - The Danish National Symphony Orchestra and Tuva
4 Beautiful Soundtracks Relaxing Piano [10min]
2CELLOS - Whole Lotta Love vs. Beethoven 5th Symphony [OFFICIAL VIDEO]
2CELLOS - Smooth Criminal (Live at Suntory Hall, Tokyo)
2CELLOS - Smells Like Teen Spirit [Live at Sydney Opera House]
2CELLOS - Despacito [OFFICIAL VIDEO]
13 Year Old Girl Playing Il Silenzio (The Silence) - André Rieu
094.All About That Bass
00 - SADNESS PART 1
(Ghost) Riders In the Sky (American Outlaws Live at Nassau Coliseum, 1
(Everything I Do) I Do It For You - Bryan Adams (Boyce Avenue ft. Conn
What a wonderful world
Moon river
×