Pressure is mounting on the Chancellor to end the ‘tourist tax’ so that London and other locations can attract American luxury goods lovers eager to swerve higher prices that could result from Trump’s tariffs in their homeland.
Renewed calls for the reform are coming from the tailor to King Charles and representatives of the major retailers.
The move – which would restore VAT-free shopping for visitors from overseas – would provide a fillip to hotels and stores in London and other locations that sell British labels like Burberry, but other luxury brands from Europe and elsewhere.
Anda Rowland, director of royal suit maker Anderson & Sheppard in Savile Row, said: ‘If Rachel Reeves is serious about pulling every lever to stimulate economic growth, she should immediately reintroduce tax-free shopping for international visitors which was available for decades and drove huge amounts of tourist trade.’
Paul Alger, international business director of the UK Fashion and Textile Association, said higher prices in America would mean ‘US consumers will be more willing to travel abroad to catch a bargain.’
Alger fears that American tourists will start their European jaunt in Britain which tends to be the routine.
In need of a boost: VAT-free shopping for visitors from overseas would provide a fillip to hotels and stores in London and other locations that sell British labels like Burberry
But to avoid more expensive prices – tariffs on European goods could be as high as 25 per cent – they will prefer to buy bags, clothing, jewellery and watches in Europe, where they offer concessions to tourist shoppers. France and Italy will be eager to press their advantage.
The Treasury’s past stubbornness over this issue is the reason why the tourist tax has not been repealed.
Since 2021, the UK has suffered £11billion-a-year in lost revenues, according to calculations from the influential CEBR consultancy.
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
Saxo
Saxo
Get £200 back in trading fees
Trading 212
Trading 212
Free dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
This article was originally published by a www.dailymail.co.uk . Read the Original article here. .