Please consider signing the below Open letter to Chancellor Jeremy Hunt:
Dear Chancellor,
The pandemic placed most businesses under acute pressure, particularly those in the hospitality, retail, and travel sectors which we represent. So, the Treasury’s decision in 2021 to end the longstanding scheme that allowed international tourists to shop tax-free was puzzling and ill-timed.
Liz Truss’s shortlived government announced plans to reintroduce the VAT rebate to boost the high street, but this has now been reversed.
Every country remaining in the EU now offers tax-free shopping, while we don’t. Effectively, we have suddenly started charging 20 per cent more than other countries do for the same goods.
The Treasury claims this move is saving the taxpayer £2 billion a year, but this is flawed and misleading. The foreign visitors who have traditionally come from the US, Middle East, China and elsewhere to shop for the best of British inject large sums into the broader economy, on top of what they spend on retail purchases.
Figures from Visit Britain show that shopping has traditionally been one of the most popular reasons cited for visiting the UK. Indeed, British business traditionally made £3.5 billion in tax-free sales to tourists every year. The scheme benefited tourist hotspots like London, Manchester, and Edinburgh, as well as out of town shopping villages.
Visitors did not just spend in retail stores - their custom supported hotels, restaurants, and theatres. Oxford Economics has concluded that if all the economic impacts of a tax-free shopping scheme are taken into consideration, the UK would, in fact, benefit to the tune of hundreds of millions of pounds a year.
The impact of its removal is already being seen. It was depressing to witness a great British brand like Mulberry closing the doors of one of its flagship stores as a direct result of the loss of tax-free shopping, as it did earlier this year.
New research from tax-free shopping experts Global Blue shows the UK is losing out on the significant spending made by international travellers as global travel resumes. Paris, Madrid and Milan can’t believe their luck as the UK’s lack of tax-free shopping drives travellers to spend in Europe.
Data covering international visitors from the USA, Gulf Cooperation Council (GCC) and Southeast Asia regions from a sample of 11 leading retailers showed that whilst the UK has recovered post-pandemic to 64 per cent of 2019 levels of consumer spending, Italy is at 79 per cent, Spain at 84 per cent and France, which is benefitting most from the UK government’s decision to remove tax-free shopping, has recovered to 108 per cent.
Looking at individual nationalities, the differences become even more pronounced. For USA visitors, the UK is back to 101 per cent of 2019 spend. However, Italy is enjoying spending from US visitors at 190% per cent of 2019 levels. Spain is up to 201 per cent and France is at a staggering 226 per cent.
For GCC visitors, the UK is at only 65 per cent of 2019 levels whilst Spain is already at 158 per cent, Italy at 166 per cent, and France topping out at 198 per cent.
In addition, UK residents are starting to take advantage of tax-free shopping in Europe, with £450m disappearing from UK high streets.
It is clear that the removal of tax-free shopping is turning into an extraordinary own goal for the UK.
We understand that there are pressures on the public finances at the present time. But the evidence shows that reinstating tax-free shopping would be a win for both business and the taxpayer.
We call on you to think again.
List of signatories:
Company | Name | Title |
Rocco Forte Hotels | Sir Rocco Forte | Chairman |
British Airways | Sean Doyle | CEO and Chairman |
Mulberry | Thierry Andretta | CEO |
Kurt Geiger | Neil Clifford | CEO |
British Fashion Council | Caroline Rush | CEO |
Royal Opera House | Alex Beard | CEO |
Anya Hindmarch | Anya Hindmarch | Founder & CEO |
Heathrow Airport | John Holland-Kaye | Chief Executive |
Paul Smith | Sir Paul Smith | Designer |
Fortnum & Mason | Tom Athron | CEO |
Burberry | Jonathan Akeroyd | CEO |
Walpole | Helen Brocklebank | CEO |
Jimmy Choo | Hannah Colman | CEO |
Dorchester Collection | Christopher Cowdray | CEO |
New West End Company | Dee Corsi | CEO |
Association of International Retail | Paul Barnes | CEO |
Alexander McQueen | Gianfilippo Testa | CEO |
Claridge's | Paul Jackson | General Manager |
Harvey Nichols | Manju Malhotra | CEO |
Bicester Village | John Durnin | Business Director |
The Berkeley | Knut Wylde | General Manager |
Nyetimber | Eric Heerema | Chairman and CEO |
Kiki McDonough | Kiki McDonough | Founder and Creative Director |
The Connaught | Sandeep Bhalla | General Manager |
Theo Fennell | Theo Fennell | Founder |
Iconic Luxury Hotels | Andrew Stembridge | Executive Director |
The Savoy London | Franck X Arnold | Regional Vice President and Managing Director |
Wedgwood | Christian Bachler | Executive Vice President |
Hotel Café Royal | Guillaume Marly | Managing Director |
Grosvenor House Suites | Andrew Henning | General Manager |
Fabergé | Antony Lindsay | CEO |
Corinthia London | Thomas Kochs | Managing Director |
Boodles | Michael Wainwright | Managing Director |
Mosimann's Private Dining Club | Philipp and Mark Mosimann | Joint Managing Directors |
Rosewood London | Michael Bonsor | Managing Director |
Design Centre Chelsea Harbour | Claire German | CEO |
Julia Carrick Luxury | Julia Carrick | CEO |
Cadogan | Hugh Seaborn | CVO and CEO |
Elizabeth Gage | Elizabeth Gage & Joanne Rees | Managing Director |
Pickett | Trevor Pickett | CEO |
Watches of Switzerland Group | Brian Duffy | CEO |
Halcyon Days and The Caverswall China Company | Pamela Harper | Chairman and CEO |
Bremont Watch Company | Giles English | Co-Founder |
Como Holdings | Chris Roberts | Managing Director |
Hirsh London | Sophia Hirsh | Managing Director |
Franchetti Bond | Nicholas Bond | Owner and Director |
Somlo Antiques London | George Somlo | Director |
Liberty London | Adil Mehboob-Khan | CEO |
Temperley London | Luca Donnini | CEO |
Global Blue (UK) | Derrick Hardman | Managing Director |
Seiko UK | David Edwards | Managing Director |
Ettinger London | Robert Ettinger | CEO |
Pragnell | Charlie Pragnell | Managing Director |
Annoushka Jewellery | Annoushka Ducas | Founder and Creative Director |
Erdem | Erdem Moralioglu/ Philippa Nixon | Designer/ CEO |
Gemfields | Sean Gilbertson | CEO |
Bucherer UK | Adrian Maronneau | Managing Director |
Sunspel Limited | Nicholas Brooke | CEO |
Henry Poole | Simon Cundey | Managing Director |
Tricker's | Martin Mason | Managing Director |
Derek Rose Ltd | Sacha Rose | CEO |
Gusbourne Fine English Wines | Charlie Holland | CEO |
DR Harris | Julian Moore | Managing Director |
Edward Green | Hilary Freeman | Managing Director |
Roksanda | Jamie Gill | Executive Director |
Johnstons of Elgin | Chris Gaffney | CEO |
Knightsbridge Partnership and King's Road Partnership | Steven Medway | Chief Executive |
The Wolseley Hospitality Group | Baton Berisha | CEO |
Somerset House Trust | Jonathan Reekie | Director |
The White Company | Chrissie Rucker/ Mary Homer | Founder/ CEO |
Philip Mould and Company | Philip Mould | Founder |
E P O K | Prudence Gibson | Founder and Creative Director |
Hauser and Wirth | Ewan Venters | CEO |
David Morris Jewels | Jeremy Morris | CEO and Creative Director |
Emma Willis | Emma Willis | Owner |
The Athenaeum Hotel and Residences | Joanne Taylor-Stagg | General Manager |
Bentley and Skinner | Mark Evans | Managing Director |
Lock and Co. Hatters | Ben Dalrymple | Managing Director |
Emmy London | Emmy Scarterfield/ Dickie Higgins | Designer/ Managing Director |
Deakin and Francis | Henry Deakin | Managing Director |
Gaziano and Girling | Dean Girling | Director |
Chelsea Physic Garden | Sue Medway | Director |
Duke and Dexter | Archie Hewlett | Founder |
Fedro Gaudenzi | Fedro Gaudenzi | Founder and Director |
Cheaney Shoes Ltd | Jonathan Church | Joint Managing Director |
FMS | Irene Mateides | Founder and Publishing Director |
Richard Ogden Ltd | Robert Ogden | Executive Director |
Thomas Goode and Co. Ltd | Andrew Guest | Commercial Director |
Berry Bros. and Rudd | Emma Fox | Chief Executive |
Lalage Beaumont | Lalage Beaumont | Owner |
Crockett and Jones | Steve Murdoch | Head of Retail Operations |
Burlington Arcade | Roger Thornton | Head of Property |
Cad & Dandy | James Sleater | Director |
Hamilton and Inches | Victoria Houghton | CEO |
Really Wild Clothing | Natalie Lake | Managing Director |
Pippa Anderson | Pippa Anderson | Owner |
Joanna Wood | Joanna Wood | CEO |
Gosling | Tim Gosling | Director |
EmmaJane Knight | EmmaJane Knight | Founder |
N. Peal | Adam Holdsworth | Owner and Creative Director |
Garrard | Joanne Milner | Chief Executive |
Heart of London Business Alliance | Ros Morgan | Chief Executive |
Loquet London | Sheherazade Goldsmith | Co-founder and Designer |
Peggy Porschen Group | Peggy Porschen | Creative Director |
Piccadilly Vaults | Simon MacLachlan | Owner & Director |
Winser London | Kim L Winser | Founder & CEO |
Norton & Sons | Martin Nicholls | Managing Director |
Susannah Lovis Jewellers | Susannah Lovis | Owner |
Martel+Ram | Kevin Martel | Founder |
Wildsmith Jewellery | Matthew Wildsmith | Owner |
Victoria Beckham | Marie Leblanc | CEO |
Wartski | Kieran McCarthy | Joint Managing Director |
Huntsman | Taj Phull | Managing Director |
Anderson & Sheppard | Anda Rowland | Vice Chaiman |
Gentlemen’s Tonic | Olivier Bonnefoy | Founder |
Minotti London | Anke Summerhill | Creative director and Owner |
Stephen Webster | Stephen Webster | Founder & Creative Director |
Planet | Tobias Caesari | Senior Vice President, UK & Ireland |
Zambuni | Claire Zambuni | Director & Founder |
ambustum | Sari Wildsmith | Founder |
Dege & Skinner | William Skinner | Managing Director |
Swaine | Carine de Koenigswarter | CEO |
Casa By JJ | Josephine Jenno | Founder |
Adret | Adam Rogers | Owner |
Twilight Trees | Susie Reid Thomas | Founder and Creative Director |
Marks & Spencer | Stuart Machin | CEO |
Edward Sexton | Dominic Sebag-Montefiore | Managing Director |
Fiona Finds | Fiona Dreesmann | Founder |
Fox Umbrellas | Paul Garrett | Managing Director |
Percy & Reed | Shannon de Boissard | Founding Partner & CEO |
Morley Stores Group | Bernard Dreesmann | Chairman |
Caroline Andrew | Caroline Andrew | Founder |
Budd (Shirt Makers) | Stephen Murphy | Chairman |
Sharpham Park | Roger Saul | Owner |
LAPADA | Freya Simms | CEO |
Hancock & Co. | Stephen Burton | Managing Director |
Airport Operators Association | Karen Dee | Chief Executive |
Regional and City Airports (including Exeter, Norwich and Bournemouth Airports) | Andrew Bell | Chief Executive |
Cardiff Airport | Spencer Birns | Chief Executive |
AGS Airports (including Aberdeen, Glasgow & Southampton Airports) | Andy Cliffe | Chief Executive |
Manchester Airports Group (incl Manchester, E Midlands & Stansted Airports) | Charlie Cornish | Group Chief Executive |
Edinburgh Airport | Gordon Dewar | Chief Executive |
City of Derry Airport | Steve Frazer | Managing Director |
Leeds Bradford Airport | Vincent Hodder | Chief Executive |
Newcastle Airport | Nick Jones | Chief Executive |
Belfast International Airport | Graham Keddie | Managing Director |
Bristol Airport | Dave Lees | Chief Executive |
London Luton Airport | Alberto Martin | Chief Executive |
London City Airport | Robert Sinclair | Chief Executive |
Gatwick Airport | Stewart Wingate | Chief Executive |
Buccellati | Lord Bruce Dundas | Managing Director |
Andrew Black Bespoke, Savile Row | Andrew Black | CEO & Founder |
Holland and Sherry | Lindsay Taylor | Director |
Nourbel & Le Cavelier | Georges Karam | Founder |
Saloni | Saloni Lodha | Founder |
Loop Generation | Piotr Krzymowski | Co-Founder |
JR Tusting | Alistair Tusting | Managing Director |
Ally Capellino | Alison Lloyd | Founder & Creative Head |
Authentic Bespoke | Rebecca Simonds | CEO |
JD Docherty | Jonathan Docherty | Director |
V V Rouleaux | Richard Lewis | Owner |
Veere Grenney Associates | Veere Grenney | Owner |
Sibyl Colefax & John Fowler | Wendy Nicholls | Managing Director |
Mason & Sons | David Mason | CEO |
AGO Hotels | Lionel Benjamin | Co-Founder |
Lore Group | David Taylor | CEO |
Trotters Childrenswear | Richard Ross | Chairman and Co Founder |
Be London Apartments | Andrew Thomson | General Manager |
Royal Lancaster London | Sally Beck | General Manager |
Mamas & Papas | Mark Saunders | Executive Chairman |
Bespoke Hotels | Robin Sheppard | President |
The Randolph Hotel by Graduate Hotels | Philip Lewis | General Manager |
Wellbrook Hospitality & LEVEN Hotels | Timothy Griffin | Co-Founder & Principal |
Flemings Mayfair | Henrik Muehle | Managing Director |
The Dilly | James Olivier | General Manager |
Manicomio Restaurant Group | Ninai Zarach | Director |
Bulgari Hotel London | Kostas Sfaltos | General Manager |
Dix-Sept | Sophie Goodbrey | Owner |
Georgian House Hotel | Serena von der Heyde | Partner |
Laird Hatters | Zofia Torun-Shaw | Director |
Christys’ London & CW Headdress | Jonathan Boston | Managing Director |
Dakota Hotels | Matt Townley | Regional Operations Director |
Essential Edinburgh | Roddy Smith | Chief Executive |
Cheapside Business Alliance & London HQ | Ruth Duston | Executive Director |
Mandarin Oriental Hotel Group | Torsten van Dulleman | Area Vice President |
Hyatt Hotels Corporation | Arnaud de Saint-Exupéry | Area Vice President / General Manager |
Longchamp | Hector Cassegrain | Managing Director |
The Langham London | Bob van den Oord | Managing Director & Regional Vice President Opertions |
The Deck London | Daisy Knatchbull | Founder |
Jenny Packham (London) | Mathew Anderson | CEO |
Central Business Alliance Business Improvement District | Alexander Jan | Chairman |
Selfridges | Andrew Keith | Managing Director |
AllSaints & John Varvatos | Peter Wood | CEO |
Supreme Creations/ Bags of Ethics | Dr Sri Sriram | Managing Director |
Accor Europe & North Africa | Aiden McAuley | Chief Operating Officer Managed Hotels |
Holiday Inn Kensington | Simon McLaughlin | General Manager |
The Ritz London | Sal Gowili | General Manager |
Ferragamo UK | Vincenzo Equestre | Chairman |
The Association of Leading Visitor Attractions | Bernard Donoghue | Director |
Astley Clarke | Scott Thomson | CEO |
Irene Forte Skincare | Irene Forte | CEO & Founder |
Farfetch | Stephanie Phair | Group President |
Symbolic & Chase | Martin Travis | Managing Director |
The Beaumont Hotel | Duncan Palmer | Managing Director |
agnes b | Marnie Serpell | Managing Director |
Blue Orchid Hotels | Tony Matharu | Executive Chairman |
The Shaftesbury Theatre | James Williams | Chief Executive |
Society Of London Theatre | Claire Walker & Hannah Essex | Co-CEOs |
Imperial London Hotels | Alex Walduck | Director |
Jo Hansford | Joanna Hansford | Managing Director |
Gladwelll & Patterson | Emily Campin | Director |
A Murphy Shoe | Andy Murphy | Director |
Conde Nast Britain | Vanessa Kingori | Chief Business Operator |
Nobu Hotel London | Grant Campbell | General Manager |
Jeeves | James Timpson | Owner |
Galvin Restaurants | Chris Galvin | Chef/Patron |
SIRPLUS | Henry Hales | Founder |
Sanderson Design Group | Lisa Montague | CEO |
The Swatch Group (UK) | Andrea Nunziata | Managing Director |
Vilebrequin | Maria Venegas | UK Country Manager |
Laurent-Perrier UK | Daniel Brennan | Brand Director |
The Goring | Jeremy Goring | Chief Executive |
Begg x Co | Oscar Macdonald | Global Commercial Director |
Mou Limited | Shelley Tichborne | Founder & CEO |
Fairfax and Favor | Felix Parker | Founder |
Baudoin & Lange | Bo van Langeveld | Founder & CEO |
APML Estate | Mike Sadler | Director |
ROX Diamonds & Thrills | Kyron Keogh | Co-Founder & Managing Director |
Jigsaw | Beth Butterwick | CEO |
F. Hinds the Jewellers | Andrew Hinds | Chairman |
Browns (Fashion) | Elizabeth von der Goltz | CEO |
Osborne Samuel | Gordon Samuel | Founder |
Robert Langford | Philippa Gibson | Trade Sales Manager |
Flo Bayley | Flo Bayley | Director |
Norton and Sons | Gina Gibbons | Manager |
Alidad | Sama Chanda | Director |
The House of Bruar | Patrick Birkbeck | Managing Director |
Deirdre Dyson Carpets | Lady Deirdre Dyson | Founder & CEO |
Mozartfest | Sir David Bell | Chair |
Bamford Watch Department & Bamford London | George Bamford | Founder & CEO |
The Really Useful Group | Lord Lloyd Webber | Owner |
Brook Taverner | Jason Scott | Owner |
Asprey London | John Rigas | Executive Chairman |
The Royal Fine Art Commission Trust | Professor Stephen Bayley | Chairman |
Poster Girl | Daliah Hearn | Global Chief Operating Officer |
Gieves & Hawkes | Thomas Muers-Raby | CMO |
Threadology | Jason Gerrard | CEO |
Favourbrook | Oliver Spencer | Founder & CEO |
Azza Fahmy Ltd | Fatma Ghaly | CEO |
Raffles London at the OWO (Old War Office) | Philippe Leboeuf | Managing Director |
George Cleverley | George Glasgow Jr | CEO |
Scabal UK | Andrew P. Goldberg | National Sales Manager |
Joss Graham Gallery | Joss Graham | Owner |
Fiona Pearce Art | Fiona Pearce | Landscape Artist |
Minotti London | Digby Summerhill | Managing Director |
Dargie Lewis Designs | Lavinia Dargie | Founder & Interior Designer |
Taylor Howes | Karen Howes | CEO |
Michael Rose Jewels | Michael Rose | Director |
Suzi Searle Interiors | Suzi Searle | Founder & Interior Designer |
Bellamy's Restaurant | Gavin Rankin | Managing Director |
Goodwin & Goodwin | Viviane Goodwin | Founder & Managing Director |
Jon Rhodes Curtain Makers | Jon Rhodes | Founder & CEO |
Colefax and Fowler | Cyrille-Adrien Bordas | Showroom Manager |
Million Dreams Media | Sami Helakorpi | Founder & Creative Director |
Metropolitan Gaming | Michael Silberling | CEO |
Kate Bingham Interior Design | Kate Bingham | Owner |
Catherine Best Jewellery | Catherine Best/Paul Freeman | Founder & Creative Director/Managing Director |
The Hippodrome Casino | Simon Thomas | Executive Chairman |
William & Son | William & Lucy Asprey | Chairman/Founder |
Crown London Aspinalls | Michael Branson | Managing Director |
Charlotte Tilbury Beauty | Demetra Pinsent | CEO |
The Gleneagles Hotel | Conor O'Leary | General Manager |
Tessa Kennedy | Tessa Kennedy | Owner |
Hockley Smith Fine Art Consulting | Matthew Hockley Smith | Director |
Italia Accessories | Lidia Festa | Director |
Fenwick | John Edgar | CEO |
Cordings of Piccadilly | Noll Uloth | Managing Director |
John Smedley | Ian Maclean | Managing Director |
Roja Parfums | Audrey Minard | CEO |
Floris | Edward Bodenham | Perfumery Director |
Huddersfield Fine Worsteds | Iain Milligan | Managing Director |
RubyKite | Joy Leese | Director |
Araminta Campbell | Araminta Birse-Stewart | Founder & Creative Director |
ENO (English National Opera) and London Coliseum | Stuart Murphy | Chief Executive |
Ukinbound | Joss Croft | CEO |
McRostie of Glasgow | Colin Campbell/Kareen Campbell | Director/Director |
Pan Pacific Hotels Group | Anne Golden | Vice President of Operations for UK and North America |
Visit Greenwich | Barrie Kelly | CEO |
ExCeL London | Jeremy Rees | CEO |
The Celtic Manor Resort | Ian Edwards | Chief Executive |
Kimpton Charlotte Square Hotel, Edinburgh | Kieran Quinn | General Manager |
The Castle Hotel Windsor | Sam Goss | General Manager |
Institute of Hospitality | Robert Richardson | Chief Executive |
Hilton London Bankside | James Clarke | General Manager |
Tate | Maria Balshaw | Director |
Royal Academy of Arts | Axel Rüger | Secretary & Chief Executive |
Shakespeare's Globe | Neil Constable | Chief Executive |
British BIDs (Business Improvement Districts) | Nic Durston | Chair |
Champagne Bollinger UK | Victoria Carfantan | Director |
The Old Vic | Laura Stevenson | Executive Director |
Red Carnation Hotels | Jonathan Raggett | CEO |
Mayculter House | Peter Walker | Managing Director |
Mercure Paignton | Jason Parry | General Manager |
South Bank Employers’ Group | David Sharpe | Chair |
South Bank Business Improvement District | Govert Deketh | Chair |
Lime Wood Group Ltd & Home Grown Hotels Ltd | Robin Hutson | Chairman |
AA Media | Simon Numphud | Managing Director |
pphe Hotel Group | Daniel Pedreschi | Regional Vice President Operations, UK |
The Vintage Watch Company | David Silver | Managing Director/Owner |
David Duggan Watches | David Duggan | Owner/Managing Director |
Joshua Kane Bespoke | Joshua Kane | Owner/Founder |
Eastwell Manor | James McComas | General Manager |
Isaia | Michael Lord | UK Manager |
Nexalert | Cengiz Ilhan | Owner |
Richard Miers Garden Designer | Richard Miers | Owner |
John Cullen Lighting | Sally Storey | Creative Director |
Park Plaza | Stefanie Hardy | General Manager |
The Ned | Gareth Banner | Group Managing Director |
Bicester Hotel Golf & Spa | Andrew Oxley | Resort General Manager |
The British Emporium | Adrian North | Managing Director |
Southbank Centre | Elaine Bedell | CEO |
Sadlers Wells Trust | Sir Alistair Spalding | Artistic Director & CEO |
Denman & Goddard | David Cook | Managing Director |
Aviator Hotel Hampshire | Adam Skrzypczak | General Manager |
Primark | Paul Marchant | Chief Executive |
British Retail Consortium | Helen Dickinson | CEO |
The Ropewalks Hotel, Liverpool | Paul Bayliss | General Manager |
National Portrait Gallery | Nicholas Cullinan | Director |
AB Hotels | Rafi Bejerano | Director |
Vivienne Westwood | Carlo D'Amario | CEO |
Bloomsbury Opco | Neil Braude | Group Operations Officer |
Icon Outlet at the O2 | Janine Constantin-Russell | Managing Director |
Bard Scotland | James Stevens | Director |
Celtic Leathercraft | Natalie McMullan | Partner |
Manolo Blahnik | Kristina Blahnik | CEO |
Bentleys London | Tim Bent | Founder & Owner |
Oliver Brown | Kristian Ferner Robson | Founder |
Chauffeur Tour Scotland | Jane Richmond | Owner |
b2me Tourism Marketing | Mike Newman | Managing Director |
The Tourism Media Group | Robert Way | Director |
Vox Group | Massimo Primerano | Managing Director |
Visit Kent & Visit Herts | Deidre Wells | CEO |
Helentours Concierge Management | Ilia Poliakov | Director |
Visit Moray Speyside | Gemma Cruickshank | CEO |
Dormeuil | Alec Parkinson | Head of UK Sales |
Airlines for America | Keith Glatz | Senior Vice President for International Affairs |
Oliver Brown | Kristian Ferner Robson | Founder |
Edwardian Hotels | Inderneel Singh | CEO |
The Glenturret | John Laurie | Managing Director |
Horizons Casino | Jeremy Cummins | Director |
