• Swindon & Wiltshire Economy
• Wednesday February 7 2024
• Author Name: Peter Davison

Business representatives gather at Heathrow to call on Chancellor to ditch ‘tourist tax’

Representatives of British business gathered at Terminal 5, Heathrow on Monday to call for a new internationally competitive tax-free shopping scheme for visitors to the UK.

The British Chambers of Commerce (BCC) and the Federation of Small Businesses (FSB) are calling for the Chancellor to provide a £1.5 billion boost to the economy with tax-free shopping for tourists.

They want a return of the tax-free shopping scheme for international visitors.

Attendees Shevaun Haviland, director general of the British Chambers of Commerce and Craig Beaumont, chief of external affairs at the FSB. The meeting was chaired by Dale Reeson, director of operations at Heathrow.

Attendees heard about the damaging effect of the policy change with estimates putting the loss to the British retail sector at over £1.5 billion a year.

Attendees also heard retail spend at Heathrow declined by 37 per cent during the first nine months of 2023, compared to the same period in 2019.

Those present argued that the Treasury could no longer dispute forecasts on the policy change but that there was now existing data which showed the hugely detrimental impact this was having on the UK’s tourism and hospitality sector.

A new internationally competitive tax-free shopping scheme would help turbocharge the UK’s retail and hospitality sectors, bringing benefit to all corners of the UK through economic growth and tax revenue.

The roundtable followed news that the OBR intends to re-examine the figures on taxation around tourist shopping in advance of the Spring Budget.

Shevaun Haviland said: “The Chancellor in his Spring Budget has the chance to firmly show that Britain is open for business, he must seize it.”

Dale Reeson said: “The UK’s international competitiveness is at stake as tourist spend in the UK is being overshadowed by other European countries, where goods are up to 20 per cent cheaper.

“We must see policy change at the Spring Budget, which would benefit every town and city across Britain.”

And Craig Beaumont, chief of external affairs at the Federation of Small Businesses (FSB), said: “Introducing tax-free shopping would be like switching on a huge, neon “welcome” sign for British business.

“After years of turmoil, small firms across the UK are looking for reasons to be positive, and a £10 billion benefit to the economy from a new tax-free shopping scheme, expanded to include the EU, would be a game-changer.

“With 30 days to go to the Spring budget, small firms in retail, hospitality and the supply chain across the regions will be looking to the Chancellor for a bold move like this – more visitors, more spend, more growth and prosperity, more jobs and more consequential tax revenues for HM Treasury.”