#tourism-spending

#tourism-spending

The head of British luxury brand Mulberry has called on the government to reinstate VAT-free shopping for international tourists, warning that the "unfair" tax burden is stifling investment and driving wealthy shoppers away from the UK. Chief executive Andrea Baldo said the move would help revitalise Britain's luxury and retail sectors - which have been hit hard by declining visitor spending since the 2021 abolition of the VAT rebate for overseas visitors - while boosting UK manufacturing and tourism revenues.

The scrapping of VAT-free shopping for international visitors has cost London's West End £310 million in lost sales during the first half of 2025, according to new research. The figure represents a 40 per cent rise on the £220 million recorded for the same period last year, and is the largest six-month loss since the scheme was abolished by the Conservative government in 2021.