London Oxford Street spend slips as pressure mounts to scrap tourist tax
Bosses behind Oxford Street are piling fresh pressure on the government to scrap the tourist tax after visitors failed to splash the cash over the Christmas period.
Dee Corsi, who heads up the New West End Company, said footfall grew three per cent over the holiday season but customers kept their purses shut, with spending down one per cent year on year.
The chief is now urging the government to re-introduce tax free shopping for international tourists, which she said would help create a new visitor economy of 450 million EU residents.
She explained:”The government must capitalise on any opportunity to inject growth into the national economy.
“International visitors are an undeniable driver of such growth, and it is imperative that they are incentivised to spend in the U.K.”
She added: “Reintroducing tax-free shopping offers the unique opportunity to boost spend from existing tourists, and simultaneously create a new visitor economy of 450 million E.U. residents who could shop tax-free in the U.K. for the first time.”
Government officials ditched the VAT refund for tourists in 2021, when Prime Minister Rishi Sunak was chancellor – a move that has since been dubbed ‘tourist tax’.
Corsi’s calls echo that of a number of luxury bosses including the head of Mulberry and Burberry, whose sales have also fallen amid a slowdown in demand for designer clobber.
“UK continued to lag Continental Europe in attracting tourism spend compared with pre-pandemic levels, reflecting the withdrawal of VAT refunds in the UK since January 2021,” the trench coat maker said in November.
Fellow fashion house Mulberry also said UK retail sales took and four per cent hit over the golden quarter.
Chief Thierry Andretta, said: “In the UK, we continue to believe the lack of VAT-free shopping is impacting the retail landscape, as well as the hospitality, leisure and tourism sectors.
“Looking ahead, we are continuing to execute our plans and remain confident that our investments will underpin future sustainable growth.”
The policy was debated in parliament last September however there has been no legislation placed to bring the tax break back.
An HM Treasury spokesperson said: “We keep all taxes under review and recognise the value that retailers bring to Britain. That is why we announced a £4.3bn business rates package at Autumn Statement to support businesses and the high street.
“VAT-free shopping remains available for all non-UK visitors buying items in store and having them sent directly to their overseas address.”