Scrap the tourist tax to kick start growth

IT reads like a roll- call of the most illustrious names in British business.

From opulent London stores such as selfridges to The ritz hotel, British airways and the King’s tailor anderson & sheppard, over 200 firms now back the Mail’s campaign to axe the damaging ‘tourist tax’.

This coalition can hardly be accused of speaking from a position of ignorance. In their respective fields, their calibre, history and breadth of knowledge is matchless.

so it takes colossal arrogance for the Chancellor to turn a deaf ear to their pleas to reinstate duty-free shopping for visitors. By doing so, he is harming the economy – opposite to what his job requires.

since abolishing this perk, which allows tourists to claim back 20 per cent off luxury goods, Britain has become increasingly unattractive to big-spending visitors. Our european rivals, by contrast, reap the rewards of his barmy decision.

Jeremy Hunt may kid himself that the policy affects only high- end emporia in London’s West end. But the truth is it hits hotels, restaurants and entertainment venues across the country.

The Treasury claims the tax will save £2billion a year. But by discouraging tourists, it will lose revenue, threaten jobs and undermine our ‘Global Britain’ claims.

so far, Mr Hunt has not made a single persuasive argument for why our scrap The Tourist Tax campaign is misguided.

Thankfully, the penny is dropping with Cabinet ministers that duty-free shopping can stimulate the economy – something that is desperately needed.

The 0.1 per cent uptick in GDP between January and March is positively anaemic. But can rishi sunak truly be surprised?

Yes, the country has suffered a series of damaging strikes and cost of living pressures. Yet it is the Prime Minister and Chancellor’s fault that Britain remains hobbled by punishing taxes, red tape, and the exorbitant and unrealistic dash to achieve net zero. Meanwhile, the public sector has become so bloated, ruinously expensive and inefficient it is dragging down the private sector – the productive part of the economy. This is unsustainable.

Mr sunak has staked his political reputation on growing the economy. He is not making it easy for himself.

But scrapping the self-defeating tourist tax is a decent way to make a start.