Damaging tourist tax
THE Treasury has under governments of all colours seemed rather dismissive of policies that vastly benefit life outside the economic powerhouse of London.
Indeed, one might imagine the chancellery’s walls hung with maps which mark territory beyond the M25 with the unnerving words: ‘Here be dragons.’
To counter this impression, ministers have portrayed the decision to scrap duty-free shopping for overseas visitors as one that will boost other parts of the country.
This tourist tax, they argue, will overwhelmingly disadvantage very wealthy foreigners and luxury West End retailers, while raising income that can be spent on the Government’s levelling-up agenda.
Yet this badly-thought-out scheme – which has made goods purchased here 20 per cent more expensive for international travellers – is hitting every corner of Britain.
Edinburgh, Manchester, York and elsewhere are suffering from fewer bigspending tourists. So are designer outlet parks such as Bicester Village. And those flying in for the Eurovision Song Contest in Liverpool are less likely to splurge.
Even the SNP has thrown its support behind the campaign to reintroduce dutyfree shopping, highlighting the benefits it would bring for Scotland.
The party said it would help promote Scotland’s world-class produce – from whisky and fresh food to fabrics – to buyers from across the world.
Scottish Tory leader Douglas Ross, who was the only Conservative MP to vote against statutory instruments removing VAT-free shopping for visitors in 2021, has also revealed he will be pushing the Prime Minister for a change in the policy.
Meanwhile, manufacturers of the high-end goods that tourists come here to buy are often made by skilled British workers far from the capital, often in some of the hardest-pressed areas.
With visitors opting to look for bargains on the Continent instead, these places are losing millions of pounds and jobs.
If the Government wants to keep the Red Wall at the election, ministers must wake up to the damage the tourist tax is doing. It is not levelling up, but levelling down.