Europe capitalising on Britain’s decision to scrap VAT-free shopping

JESSICA FRANK-KEYES AND LAURA MCGUIRE

INTERNATIONAL tourists are spending more in Europe than in the UK as Britain’s retail sector continues to be hamstrung by the government’s decision to scrap VAT-free shopping, members of the House of Lords warned yesterday.

VAT-free shopping for tourists was removed when the UK officially left the EU under then-Chancellor Rishi Sunak, but the retail industry has become increasingly vocal with calls to reinstate it.

“US tourists who are going to France, Spain and Italy are spending at the rate of three times what they did in 2019… our retailers are really struggling and they need and deserve a level playing field,” Baroness Elizabeth Doocey said.

“The UK needs to clearly show it is open for businesses, as other countries are capitalising on this failure,” Nicholas Trench, Earl of Clancarty, said. Baroness Joanna Penn said the Treasury “continues to monitor the evidence”.