In a submission to the Treasury, it additionally urged him to ask the Office for Budget Responsibility to do a complete evaluation of the “tourist tax”, contemplating the broader financial advantages together with to eating places, theatres and resorts, in addition to retailers.
BusinessLDN chief govt John Dickie mentioned: “The tourist tax is an economic own goal. Re-introducing the VAT reclaim scheme would boost UK’s flatlining economy through increased spending from international visitors in our shops, restaurants, hotels and more.”
He argued that axing the levy would ship an annual £350 million financial fillip to the UK’s public funds.
The Treasury disputes this determine, placing the associated fee at as much as £2 billion, with the variations considerably right down to various estimates over what number of further worldwide guests would come to the UK if tax-free purchasing was restored.
Hoewever Amelia Bright, director of London Estate, Grosvenor, additionally criticised the levy, stressing: “The only winners are Paris, Madrid and Milan.”
Ros Morgan, head of the Heart of London Business Alliance, added: “Theatres, galleries and museums are heavily reliant on overseas tourists, but they are now choosing to visit our international competitors.”
Inderneel Singh, chief govt of Edwardian Hotels London, emphasised: “We have noticed a growing trend where leisure travellers are choosing other European destinations over London because they offer tax-free shopping.”
Pressing for an official Treasury evaluation of the coverage, New West End Company chief Dee Corsi mentioned: “This tourist tax is an undeniable drag on the UK economy.”
Ruth Duston, managing director for Primera Corporation, which runs 14 London enterprise enchancment districts, defined: “If we are serious about kick-starting growth in London, and therefore in the whole of the UK, we must reinstate VAT-free shopping.”
Toby Courtauld, chief govt of Great Portland Estates, mentioned: “The UK is now the only European country not to offer tax-free shopping.”
Senior Tory Sir Geoffrey Clifton-Brown has secured a Commons debate on September 7 on tax-free looking for worldwide guests.
Labour Mayor of London Sadiq Khan harassed that restoring it will be a “quick way” for the Government to develop the economic system.
But a Treasury spokesperson mentioned: “VAT-free shopping does not directly benefit Brits – it lets foreign tourists who buy items in the UK to claim back VAT as they return home.
“The scheme could cost British taxpayers around £2 billion a year at a time when we’ve already had to take difficult decisions to get debt falling and fewer than one in ten non-EU visitors used the previous scheme, showing it’s not a significant attraction for tourists.”
Airport and rail chiefs additionally criticised retaining the levy.
Heathrow’s chief industrial officer Ross Baker mentioned: “The decision is disastrous for UK competitiveness as tourist spend in the UK is now eclipsed by our European neighbours where goods are up to 20 per cent cheaper.”
Gatwick’s retail director Rachel Bulford known as on the Chancellor to carry again the tax-free purchasing within the Autumn Budget “as big-spending travel markets like China grow back”.
Stansted managing director Gareth Powell mentioned the transfer would give the UK economic system a “massive boost”.
Wendy Spinks, Commercial Director at HS1 Ltd, the excessive velocity rail hyperlink to the Channel utilized by Eurostar, harassed it will “provide another incentive for people to visit the UK”.
