Latest news with #DerrickHardman
Fashion Network
5 days ago
- Business
- Fashion Network
UK shopper spend in EU "soaring" due to tax-free shopping says retail body
AIR and 500 businesses, including those at all price levels from Burberry to Primark, are again calling for government ministers to reinstate tax-free shopping for international visitors and make the UK 'the shopping capital of the world'. AIR data shows that Britons spent £742 million on VAT-free shopping in the EU in 2024. That compares to £147 million in 2021, £527 million in 2022, and £646 million in 2023. And this fast growth is continuing in 2025 with spending in the first 22 weeks up 16% on the same period in 2024. Further AIR findings show that France has become the most popular EU destination for British VAT-free shoppers, attracting 35% of all spending, with Paris accounting for 75% of this. While the last government scrapped tax-free shopping for tourists in the UK at the start of 2021, it noted EU countries extended it to British shoppers for the first time. The figures suggest that 'as a consequence, Britons are increasingly shunning homegrown stores and travelling abroad to make significant purchases where they can reclaim sales tax', AIR said. It believes the findings 'will increase pressure on ministers to reintroduce tax rebates for all international visitors – both EU and non-EU – to put British businesses back on a level playing field'. Reversing the current policy would, according to AIR's analysis, mean the new market for EU consumers alone would supercharge the national economy by over £3.65 billion a year, create 73,000 new jobs across the country, boost regions of the UK by £1.8 billion a year and generate over £500 million in additional VAT alone for the Treasury. Derrick Hardman, chair of AIR, said: 'The disproportionate increase in British visitor numbers to the EU show that a new market in shopping-led tourism has emerged. 'It's sad to see British shoppers taking their business elsewhere. But they have worked out that the tax rebates they can get on the Continent more than outweigh the costs of hopping on the Eurostar or taking a cheap short-haul flight somewhere. 'It makes no sense for the UK to remain the only destination in Europe not offering tax-free shopping. Thanks to our position outside the EU, we now have a unique chance to reverse the policy of the last government and become the world's shopping capital – offering tax rebates for both EU and non-EU shoppers. 'All the evidence shows that reintroducing a tax-free shopping scheme would more than pay for itself thanks to all the spending stimulated not just in retailers but on hotels, restaurants, transport, tourist attractions and entertainment. 'This Government has promised to pull every lever available to promote growth – here is an obvious one.' Helen Brocklebank, CEO of luxury body Walpole, added: 'Every pound spent by British and international tourists in Europe instead of the UK threatens growth, denies the Exchequer revenue and undermines the competitiveness of our retailers, manufacturers, hospitality businesses and iconic brands. 'As the sector body representing Britain's high-value manufacturing and services industries, which export British excellence worldwide and support 450,000 jobs and £25.5 billion in tax revenues, we are calling for a simple reversal of the previous government's policy. This would allow the UK to share in future growth, keep our towns, cities and tourism hubs globally competitive, and ensure businesses of all sizes can trade on equal terms with their European counterparts.'
Fashion Network
6 days ago
- Business
- Fashion Network
UK shopper spend in EU "soaring" due to tax-free shopping says retail body
AIR and 500 businesses, including those at all price levels from Burberry to Primark, are again calling for government ministers to reinstate tax-free shopping for international visitors and make the UK 'the shopping capital of the world'. AIR data shows that Britons spent £742 million on VAT-free shopping in the EU in 2024. That compares to £147 million in 2021, £527 million in 2022, and £646 million in 2023. And this fast growth is continuing in 2025 with spending in the first 22 weeks up 16% on the same period in 2024. Further AIR findings show that France has become the most popular EU destination for British VAT-free shoppers, attracting 35% of all spending, with Paris accounting for 75% of this. While the last government scrapped tax-free shopping for tourists in the UK at the start of 2021, it noted EU countries extended it to British shoppers for the first time. The figures suggest that 'as a consequence, Britons are increasingly shunning homegrown stores and travelling abroad to make significant purchases where they can reclaim sales tax', AIR said. It believes the findings 'will increase pressure on ministers to reintroduce tax rebates for all international visitors – both EU and non-EU – to put British businesses back on a level playing field'. Reversing the current policy would, according to AIR's analysis, mean the new market for EU consumers alone would supercharge the national economy by over £3.65 billion a year, create 73,000 new jobs across the country, boost regions of the UK by £1.8 billion a year and generate over £500 million in additional VAT alone for the Treasury. Derrick Hardman, chair of AIR, said: 'The disproportionate increase in British visitor numbers to the EU show that a new market in shopping-led tourism has emerged. 'It's sad to see British shoppers taking their business elsewhere. But they have worked out that the tax rebates they can get on the Continent more than outweigh the costs of hopping on the Eurostar or taking a cheap short-haul flight somewhere. 'It makes no sense for the UK to remain the only destination in Europe not offering tax-free shopping. Thanks to our position outside the EU, we now have a unique chance to reverse the policy of the last government and become the world's shopping capital – offering tax rebates for both EU and non-EU shoppers. 'All the evidence shows that reintroducing a tax-free shopping scheme would more than pay for itself thanks to all the spending stimulated not just in retailers but on hotels, restaurants, transport, tourist attractions and entertainment. 'This Government has promised to pull every lever available to promote growth – here is an obvious one.' Helen Brocklebank, CEO of luxury body Walpole, added: 'Every pound spent by British and international tourists in Europe instead of the UK threatens growth, denies the Exchequer revenue and undermines the competitiveness of our retailers, manufacturers, hospitality businesses and iconic brands. 'As the sector body representing Britain's high-value manufacturing and services industries, which export British excellence worldwide and support 450,000 jobs and £25.5 billion in tax revenues, we are calling for a simple reversal of the previous government's policy. This would allow the UK to share in future growth, keep our towns, cities and tourism hubs globally competitive, and ensure businesses of all sizes can trade on equal terms with their European counterparts.'
Fashion Network
6 days ago
- Business
- Fashion Network
UK shopper spend in EU "soaring" due to tax-free shopping says retail body
AIR and 500 businesses, including those at all price levels from Burberry to Primark, are again calling for government ministers to reinstate tax-free shopping for international visitors and make the UK 'the shopping capital of the world'. AIR data shows that Britons spent £742 million on VAT-free shopping in the EU in 2024. That compares to £147 million in 2021, £527 million in 2022, and £646 million in 2023. And this fast growth is continuing in 2025 with spending in the first 22 weeks up 16% on the same period in 2024. Further AIR findings show that France has become the most popular EU destination for British VAT-free shoppers, attracting 35% of all spending, with Paris accounting for 75% of this. While the last government scrapped tax-free shopping for tourists in the UK at the start of 2021, it noted EU countries extended it to British shoppers for the first time. The figures suggest that 'as a consequence, Britons are increasingly shunning homegrown stores and travelling abroad to make significant purchases where they can reclaim sales tax', AIR said. It believes the findings 'will increase pressure on ministers to reintroduce tax rebates for all international visitors – both EU and non-EU – to put British businesses back on a level playing field'. Reversing the current policy would, according to AIR's analysis, mean the new market for EU consumers alone would supercharge the national economy by over £3.65 billion a year, create 73,000 new jobs across the country, boost regions of the UK by £1.8 billion a year and generate over £500 million in additional VAT alone for the Treasury. Derrick Hardman, chair of AIR, said: 'The disproportionate increase in British visitor numbers to the EU show that a new market in shopping-led tourism has emerged. 'It's sad to see British shoppers taking their business elsewhere. But they have worked out that the tax rebates they can get on the Continent more than outweigh the costs of hopping on the Eurostar or taking a cheap short-haul flight somewhere. 'It makes no sense for the UK to remain the only destination in Europe not offering tax-free shopping. Thanks to our position outside the EU, we now have a unique chance to reverse the policy of the last government and become the world's shopping capital – offering tax rebates for both EU and non-EU shoppers. 'All the evidence shows that reintroducing a tax-free shopping scheme would more than pay for itself thanks to all the spending stimulated not just in retailers but on hotels, restaurants, transport, tourist attractions and entertainment. 'This Government has promised to pull every lever available to promote growth – here is an obvious one.' Helen Brocklebank, CEO of luxury body Walpole, added: 'Every pound spent by British and international tourists in Europe instead of the UK threatens growth, denies the Exchequer revenue and undermines the competitiveness of our retailers, manufacturers, hospitality businesses and iconic brands. 'As the sector body representing Britain's high-value manufacturing and services industries, which export British excellence worldwide and support 450,000 jobs and £25.5 billion in tax revenues, we are calling for a simple reversal of the previous government's policy. This would allow the UK to share in future growth, keep our towns, cities and tourism hubs globally competitive, and ensure businesses of all sizes can trade on equal terms with their European counterparts.'
Fashion Network
6 days ago
- Business
- Fashion Network
UK shopper spend in EU "soaring" due to tax-free shopping says retail body
AIR and 500 businesses, including those at all price levels from Burberry to Primark, are again calling for government ministers to reinstate tax-free shopping for international visitors and make the UK 'the shopping capital of the world'. AIR data shows that Britons spent £742 million on VAT-free shopping in the EU in 2024. That compares to £147 million in 2021, £527 million in 2022, and £646 million in 2023. And this fast growth is continuing in 2025 with spending in the first 22 weeks up 16% on the same period in 2024. Further AIR findings show that France has become the most popular EU destination for British VAT-free shoppers, attracting 35% of all spending, with Paris accounting for 75% of this. While the last government scrapped tax-free shopping for tourists in the UK at the start of 2021, it noted EU countries extended it to British shoppers for the first time. The figures suggest that 'as a consequence, Britons are increasingly shunning homegrown stores and travelling abroad to make significant purchases where they can reclaim sales tax', AIR said. It believes the findings 'will increase pressure on ministers to reintroduce tax rebates for all international visitors – both EU and non-EU – to put British businesses back on a level playing field'. Reversing the current policy would, according to AIR's analysis, mean the new market for EU consumers alone would supercharge the national economy by over £3.65 billion a year, create 73,000 new jobs across the country, boost regions of the UK by £1.8 billion a year and generate over £500 million in additional VAT alone for the Treasury. Derrick Hardman, chair of AIR, said: 'The disproportionate increase in British visitor numbers to the EU show that a new market in shopping-led tourism has emerged. 'It's sad to see British shoppers taking their business elsewhere. But they have worked out that the tax rebates they can get on the Continent more than outweigh the costs of hopping on the Eurostar or taking a cheap short-haul flight somewhere. 'It makes no sense for the UK to remain the only destination in Europe not offering tax-free shopping. Thanks to our position outside the EU, we now have a unique chance to reverse the policy of the last government and become the world's shopping capital – offering tax rebates for both EU and non-EU shoppers. 'All the evidence shows that reintroducing a tax-free shopping scheme would more than pay for itself thanks to all the spending stimulated not just in retailers but on hotels, restaurants, transport, tourist attractions and entertainment. 'This Government has promised to pull every lever available to promote growth – here is an obvious one.' Helen Brocklebank, CEO of luxury body Walpole, added: 'Every pound spent by British and international tourists in Europe instead of the UK threatens growth, denies the Exchequer revenue and undermines the competitiveness of our retailers, manufacturers, hospitality businesses and iconic brands. 'As the sector body representing Britain's high-value manufacturing and services industries, which export British excellence worldwide and support 450,000 jobs and £25.5 billion in tax revenues, we are calling for a simple reversal of the previous government's policy. This would allow the UK to share in future growth, keep our towns, cities and tourism hubs globally competitive, and ensure businesses of all sizes can trade on equal terms with their European counterparts.'
Telegraph
05-08-2025
- Business
- Telegraph
Britons desert UK stores for tax-free EU shopping
Britons are abandoning UK stores for tax-free shopping in Europe amid a boom in tourists travelling abroad to buy high-end goods. UK shoppers have spent 16pc more on tax-free shopping in the EU in 2025 so far compared to the same period last year, new figures from the Association of International Retail (AIR) show. It follows a trend of higher spending in the EU after Brexit allowed UK shoppers to take advantage of the VAT-free shopping scheme across the Continent. Since 2021, British tourists visiting the EU have been able to claim VAT back on their shopping under the bloc's tax-free shopping scheme. Last year, they spent £742m on tax-free shopping in the EU compared to £527m in 2022. Derrick Hardman, AIR's chairman, said UK consumers had 'worked out that the tax rebates they can get on the Continent more than outweigh the costs of hopping on the Eurostar or taking a cheap short-haul flight somewhere'. He said the figures showed that 'a new market in shopping-led tourism has emerged', adding: 'It's sad to see British shoppers taking their business elsewhere.' It will add to pressure on Labour to consider reinstating the UK's VAT-free shopping scheme for overseas visitors in an effort to level the playing field with the EU. In April, Lisa Nandy, the Culture Secretary, opened the door to a rethink of the scheme. While the EU extended tax-free shopping to UK tourists in 2021, the UK scrapped its own scheme the same year. It means that since Brexit, overseas visitors have not been able to claim VAT back when they purchase items in Britain. Campaigners have argued that the decision deters around two million visitors from coming to the UK every year. Companies such as handbag maker Burberry and high-end department store Harrods have claimed that the policy not only deters spending in UK stores, but disproportionately hurts domestic luxury companies. That is because they say that shoppers are more likely to spend on the home-grown brands in the country they are visiting. Mr Hardman said: 'It makes no sense for the UK to remain the only destination in Europe not offering tax-free shopping.' He suggested the UK should seek to lure shoppers away from EU countries with more tourist-friendly policies to boost its economy: 'Thanks to our position outside the EU, we now have a unique chance to reverse the policy of the last government and become the world's shopping capital – offering tax rebates for both EU and non-EU shoppers.' AIR analysis shows that providing tax rebates for EU shoppers into the UK alone would provide a £3.65bn boost to the economy every year and generate over £500m in additional VAT alone for the Treasury. Sir Rocco Forte, the chairman of Rocco Forte Hotels, said: 'We see in our hotels that foreign visitors who would come for lengthy stays in the UK and return to us laden down with parcels are increasingly cutting short their stays and spending time in Europe, where they can still shop tax-free. 'The decision of the last government to scrap tax-free shopping, which had been available for decades, makes no sense and should be reversed immediately by any government serious about promoting economic growth.' A Treasury spokesman said: 'The UK is one of the most visited countries in the world with international tourism driving billions into our economy. 'We are supporting the continued growth of this industry and will be launching a National Visitor Economy Strategy this autumn to help meet our ambition to welcome 50 million international visitors a year to the UK by 2030.'
