Post Budget Letter to Supporters

October 31st 2024
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Dear Tax-Free Shopping Supporter,
 
As expected, Rachel Reeves’ first Labour Budget was silent on the issue of Tax-Free Shopping (TFS). Although disappointing, it was apparent from our meetings with Ministers and officials in the run-up to yesterday’s Budget that the restoration of TFS was not under serious consideration at this stage in the cycle.
 
However, there is a window of opportunity over the next twelve months. Privately, Ministers and others have made it clear to us that once this initial Budget is out of the way and we move into 2025, the door will be open to consideration of the reintroduction of TFS if three conditions are met:
 
  • the reaction over cuts to Winter Fuels Allowance and other benefits has subsided;
  • there is more convincing evidence that its restoration will be a net positive for the Exchequer;
  • it is framed as a growth measure within the wider context of the international visitor sector that will benefit “everyone, everywhere”, not just a few in London.
If our campaign succeeds, it will not only win back the estimated £1.5bn annual spending lost by British shops to France, Spain and Italy, but will also create a unique, new, shopping-led, EU tourism market which AIR believes could be worth additional £10bn, generated each year across the whole of the UK.
 
However, to get this over the line in the next 12 months will require a Herculean effort from all those who are set to benefit most directly from this new market of EU visitors.
 
The Association of International Retail (AIR), a coalition of retailers, property owners, airports, BIDs, payment companies and fashion houses, has led the campaign to restore TFS over the past three years after it was abolished by Rishi Sunak.
 
Since the election, we have been busy reaching out to the new Government and developing our plans in line with the advice we have received from Ministers and officials.
 
If you would like to be part of our campaign to bring back TFS and open up this new EU visitor market or you would like to learn more about our planned activities please get in touch with me. There are a variety of ways in which you can help and we’d love to have you on board.
 
Best wishes,
 
Paul Barnes
Chief Executive