It’s time to make most of our Brexit freedoms

WHEN it comes to attracting tourists from around the world, it’s no secret that the UK is a big player. And although our weather may not be compelling, our culture, heritage and creativity tip the balance.

The numbers speak for themselves. Last year our little island received more than 30million visitors. People from around the world flock here, drawn by everything from our Royal Family to the Peaky Blinders, and much more besides.

But the absence of a competitive tax policy for tourists means that British retailers are losing out.

In fact, research carried out by this publication showed that whilst last year spending in the UK by tourists from America was at an impressive 101 per cent of 2019 levels, in France, Spain and Italy it had multiplied by a far greater amount.

So, what happened to the muchvaunted post-Brexit freedoms we were told would make our tourism industry one of the most competitive in the world?

It’s a question I put to Rishi Sunak before Christmas, and it’s why I’m joining calls for the Chancellor to review his policy on tax-free shopping at the next Budget. The Prime Minister told me there were ‘a range of different views about that policy’.

My concern is that some of those views – especially the ones from the Treasury – have been formed off inaccurate or incomplete data. While the Government previously stated that re-introducing tax-free shopping would cost the Treasury £2billion, other analysis has shown a net benefit in the hundreds of millions and the creation of up to 80,000 jobs.

The losers from the failure to implement this policy aren’t just retailers but hospitality and entertainment venues too. In fact, the total amount lost because of a lack of tax-free shopping has been estimated by the Association of International Retail (AIR) at as much as £12billion.

This isn’t just about attracting more people to Britain, but encouraging visitors to come for longer and spend more money, spreading the benefits of international tourism across the country and across the economy, so that everyone wins.

As Paul Barnes, chief executive of AIR, told our committee: ‘here is a potential growth measure that has come as a result of leaving the EU. There is the potential for £12billion of new money to come into Britain every year. It will go to all the different regions, and will happen almost in year one.’

A proper review of the policy by the Treasury might consider that it is 20 per cent cheaper for tourists to shop for luxury products in Europe.

It might also use the most up-todate data and question why tourism is recovering faster in our European neighbours where tax incentives are luring people to their shores.

The strength of our culture and a sensible tax policy can be tools to demonstrate to the world the benefits of Brexit; we should not be shy to use them.

■ Dame Caroline Dinenage is the Conservative MP for Gosport