Over 300 fashion CEOs and business leaders demand the removal of the UK’s ‘tourist tax’.
- The open letter to Chancellor Rachel Reeves argues the tax impairs Britain’s global shopping appeal.
- Signatories include CEOs from Mulberry, Kurt Geiger, and the British Retail Consortium.
- Industry leaders cite a £11.1bn GDP loss due to reduced tourism.
- Influential figures from all main political parties support the policy’s reversal.
More than 300 chief executives and business leaders in the fashion industry have united to call upon Chancellor Rachel Reeves to abolish the ‘tourist tax’ policy, implemented in 2021. The open letter, signed by notable figures such as Andrea Baldo of Mulberry and Neil Clifford of Kurt Geiger, highlights the economic disadvantages caused by the absence of tax-free shopping for tourists, a benefit available in other European countries.
The letter describes the current situation as ‘a spectacular own goal’ for the UK, emphasising the policy’s detrimental impact on the nation’s retail sector. Signatories argue that reversing the policy could significantly bolster economic growth, reflecting the urgent appeals from diverse industry leaders, including Caroline Rush from the British Fashion Council and Helen Dickinson of the British Retail Consortium.
The economic repercussions of the tourist tax are broad-ranging, affecting not just luxury shops in London’s West End, but the entire tourist ecosystem, including regional attractions, restaurants, and transport services. The argument posits that tourists are increasingly favouring Paris, Milan, and Berlin over UK destinations for shopping, due to the lack of a VAT rebate.
Analysis by the Centre for Economics and Business Research estimates a loss of £11.1 billion in GDP annually, with two million fewer tourists visiting the UK. This data strengthens the call for reform, suggesting the policy undercuts the country’s competitive edge in the tourism and retail sectors.
Support for policy change extends across political lines, with Labour’s Mayor of London Sadiq Khan, former Conservative chancellors Sajid Javid and Nadhim Zahawi, and Liberal Democrat leader Sir Ed Davey all advocating for the removal of the tax. Industry leaders urge swift governmental action to restore the UK’s attractiveness as a shopping destination.
The concerted appeal from both industry and political figures underscores the pressing need to address the economic impact of the ‘tourist tax’.
