Calls on government to scrap ‘tourist tax’ from West End shops saying lack of VAT-free shopping is deterring shoppers from coming back post-pandemic
- The New West End Company said London stores are losing out to European rivals
- It has called on the government to reintroduce VAT-free shopping across Britain
Ministers have been urged to abolish a ‘tourist tax’ by business leaders, who say London’s prime shopping district is losing out to European rivals.
The New West End Company, representing 600 businesses in Bond Street, Oxford Street and Regent Street, has warned that international travelers are not returning to the capital at the same rate as Paris and Milan after VAT-free shopping. overseas visitors was dumped two years ago.
It would make London and the rest of the UK more attractive if foreign visitors could reclaim the 20 per cent tax on their purchases.
Their report said yesterday: ‘To ensure the West End is able to compete with its European rivals and realize its potential to thrive, NWEC calls on the Government to build on the resilience the district has shown and take valuable growth measures including the reintroduction of tax-free shopping in the UK.”
NWEC managing director Dee Corsi said the West End has an ‘eager international audience with cash waiting in the wings’.
The New West End Company, representing 600 businesses in Bond Street, Oxford Street and Regent Street, has warned that international travelers are not returning to the capital at the same rate as Paris and Milan after VAT-free shopping. overseas visitors was dumped two years ago. Pictured: Oxford Street, London

It would make London and the rest of the UK more attractive if foreign visitors could reclaim the 20 per cent tax on their purchases. Pictured: Regent Street, London
It comes after designer brands including Kurt Geiger and Burberry criticized the policy, claiming international shoppers are being turned away.
VAT-free shopping was abolished in January 2021 by Rishi Sunak, chancellor at the time.
Former chancellor Kwasi Kwarteng announced he would revive the stimulus in his September ‘mini-budget’ – but this was quickly dumped by successor Jeremy Hunt.
Despite pleas from companies trying to recover from the pandemic, Mr Hunt said the reversal would save £2 billion.
But a report from Oxford Economics claimed that reinstating the policy would increase the treasury by £350m a year, attracting an additional 1.6million visitors to the UK.