Tourist tax must be axed to save UK shops, says Patel

DAME Priti Patel has demanded Jeremy Hunt scrap the “tourism tax” in this week’s Budget.

The former home secretary said the Government should reintroduce Vatfree shopping for tourists to inject fresh momentum into the economy.

In an article for The Telegraph online, she said such a move would “give businesses a real boost” and help them compete with European rivals.

A wide range of groups, including the British Chambers of Commerce, the Federation of Small Businesses and Heathrow Airport have joined the campaign to axe the tourist tax.

Dame Priti said: “Our country now needs more pro-business measures to secure future growth and with the Budget approaching, the Chancellor must consider scrapping the tourism tax and reintroducing Vat-free shopping for foreign visitors. This decision will give businesses a real boost as the current tourism tax has made us less attractive for overseas visitors and tourists and it is widely opposed by a broad coalition of businesses.

“From local tourism boards and councils, to high-street favourites and our airports, there are growing calls for tax free shopping to be reintroduced.”

She pointed to data from Visit Britain showing spending by overseas visitors was down 10 per cent in real terms in the third quarter of 2023 compared to the same period four years earlier, just before the pandemic.

“Unless tax-free shopping is reintroduced, British businesses and brands will continue to lose out to their European competitors,s,” she said.

“Our competitors in Europe have already taken advantage, with France experiencing record levels of tourism spend in 2022 and 2023 as they attract high spending tourists.

“That’s why the Chancellor needs to get Britain back on a competitive footing as reintroducing tax-free shopping will boost the economy, support job creation and help our retail, hospitality and tourism sectors to thrive.”