Rachel Reeves is under pressure to restore tax -exempt shopping for international visitors after new figures revealed that Britain is losing billions of pounds every year for competing destinations.
Research conducted by the International Retaus Association (AIR) and Global Blue shows that spending by non -European Union of the United Kingdom is stuck at only 75 percent of prenatal levels since conservatives divided VAT exemption in 2021.
In contrast, Continental Europe has witnessed a record height in tourist spending. Visitor expenditures increased by 166 percent in Spain, 159 percent in France and 137 percent in Italy compared to pre -loved levels.
The report estimates that Britain missed about two million pounds of spending last year alone, with a decrease in intensity among visitors with high spending from the Gulf. Shoppers from Saudi Arabia and Kuwait spent 27 percent less by the epidemic, while the United Kingdom has increasingly forced to rely on American tourists, as it failed to grow from competing European markets.
Critics warn that tax change pays luxurious shopping and relevant economic benefits abroad. “The UK is shooting on its foot. This is economic madness,” said a retailer.
The numbers come at a time when some local councils accumulate on visitors who have proposals for their “tourism taxes” – night fees on the hotel and accommodation. Cities, including Oxford, Liverpool and Bournemouth, weigh such plans, while last year, Aberdeen became the most expensive place in Europe to the pillars of visitors after Scotland introduced new powers.
Since then, many Scottish councils have suspended their plans after a violent reaction, as critics argue that measures have risked the visit of visitors that the British economy needs.
The retail industry is now intensifying Reeves invitations to revive the value -added tax exemption before its budget in November, on the pretext that restoring the feature can enhance competitiveness, revive spending on visitors and generate billions of treasury.
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