MPs from all parties call for tourist tax to be axed as Liz Truss and Sadiq Khan claim the fee puts Britain at a ‘competitive disadvantage’ with rest of Europe

Mail 04.24.23 A cross-party group of politicians joined forces tonight to back the Mail’s campaign to bring back tax-free shopping for tourists. Former prime minister Liz Truss led a growing clamour of calls from MPs demanding ministers restore the VAT refund for visitors to boost economic growth. She was joined by Labour’s London Mayor Sadiq Khan and Liberal Democrat leader Sir Ed Davey, who said … Read More

Tourist spending down by third as wealthy overseas visitors shun UK over shopping tax imposed by Rishi Sunak when he was Chancellor

Mail Emily Hawkins 03.11.23 Italy and Spain are much closer to seeing a return to 2019 levels of tourist spending, while in France they are already spending more. Paul Barnes, head of the Association of International Retail (AIR), said other cities would be ‘rubbing their hands with glee’ over the figures. American and Middle Eastern tourists in particular have returned to rival cities … Read More

London fears losing luxury shoppers to Paris and Milan

Reuters James Davey and Sarah Young 03.15.23 London’s luxury retailers fear the city is losing its pull as a shopping destination, with tourists from the United States, China and the Gulf flocking instead to Paris and Milan where tax breaks still offer a way to cut the cost of their purchases. With finance minister Jeremy Hunt set to present the government’s budget … Read More

Spring Budget Does Not Meet London Business Expectations

London Chamber 03.15.23 The London Chamber of Commerce and Industry (LCCI), in response to the Spring Budget, declared that it fell short of delivering optimum value and support for London businesses. With the cost of living crisis, this year’s Budget was a lost opportunity in providing stronger support on energy bills to London’s small and medium sized enterprises (SMEs). To … Read More

BUSINESSLDN COMMENTS ON THE SPRING BUDGET 2023

BusinessLDN 03.14.23 “It is disappointing that the Government has missed an opportunity to launch an independent review of the benefits of VAT-free shopping – a measure that would more than pay for itself by attracting high spending tourists to the UK and support 78,000 jobs across the country.” To read more, please click here

DCMS publishes Tourism Recovery Plan update with commitment to “explore measures to mitigate impact of ending tax-free shopping”. 

AIR 03.23 DCMS publishes Tourism Recovery Plan update with commitment to “explore measures to mitigate impact of ending tax-free shopping”.  AIR discusses with tourism officials of need to evaluate impact in order to mitigate AIR discusses with tourism officials and raise the issue that in order to mitigate the impact, an evaluation of the impact is needed first. To read … Read More

AIR makes formal submission to Labour Party Policy Forum, promoting international visitor economy 

AIR 03.23 Ahead of Labour National Policy Forum, AIR makes formal submission promoting international visitor economy. In the submission Paul Barnes, chief executive of the Association of International Retail, writes the development of technology will lead to a world where people have more wealth and more leisure time.  To balance Britain’s high-tech economic development a Labour Government should recognise and encourage … Read More

HMT publishes response to AIR’s Oxford Economics Report 

HM Treasury 02.23 In the WPQ, the Exchequer Secretary to the Treasury James Cartlidge gave response to AIR’s Oxford Economics Report. In his response, James Cartlidge claimed the Treasury do not recognise these figures. The OBR, using a higher than usual price elasticity of demand to account for VAT-free shopping being targeted at luxury goods, put this figure at 20,000-30,000 … Read More

AIR assists London Mayor in open letter to the Chancellor calling for Tax-free shopping restoration 

Sadiq Khan 01.31.23 The Mayor wrote to the Chancellor, alongside key businesses and business groups, to urge the Government to reintroduce VAT-free shopping for international visitors as soon as possible. The Mayor wrote that reintroducing the VAT Retail Export Scheme and airside tax-free shopping will help to increase the number of international tourists who visit London and the United Kingdom, … Read More