Heathrow Airport and Thames Valley Chamber lead calls for return of tax-free shopping

Business leaders gathered at Heathrow to call for a return to tax-free shopping for international visitors.

Attendees included representatives of businesses across the UK, including Shevaun Haviland (DG of the British Chambers of Commerce) and Paul Britton (CEO of the Thames Valley Chamber of Commerce) and the meeting was chaired by Dale Reeson (Director of Operations, Heathrow).

Attendees heard the effect of the policy change with estimates putting the loss to the British retail sector at over £1.5bn a year.

Attendees also heard retail spend at Heathrow declined by 37 per cent during the first nine months of 2023, compared to the same period in 2019.

Those present argued that the Treasury could no longer dispute forecasts on the policy change but that there was now existing data which showed the hugely detrimental impact this was having on the UK’s tourism and hospitality sector.

A new internationally competitive tax-free shopping scheme would help turbocharge the UK’s retail and hospitality sectors, bringing benefit to all corners of the UK through economic growth and tax revenue.

The roundtable followed news that the OBR intends to re-examine the figures on taxation around tourist shopping in advance of the Spring Budget.

Paul Britton, CEO, Thames Valley Chamber of Commerce said: “The impact of the “tourist tax“ is not limited to the significant hospitality and retail sector, but transport, and the wider visitor economy, dis-incentivising longer visits to our iconic attractions, and pushing spend elsewhere in Europe.

"We have seen new momentum in this debate from this campaign and we need to see the back of this tax”.

Dale Reeson, Director of Operations, Heathrow said: “We were delighted to be joined by the BCC and FSB today at Heathrow, coming together on the campaign to scrap the tourist tax, to level the playing field for British businesses.

“The UK’s international competitiveness is at stake as tourist spend in the UK is being overshadowed by other European countries, where goods are up to 20% cheaper. We must see policy change at the Spring Budget, which would benefit every town and city across Britain.”