- Reeves wants to become the most ‘pro-growth’ chancellor in UK history
Major businesses are calling on shadow chancellor Rachel Reeves to scrap the hated “tourist tax” if Labor wins the election.
Bosses at companies including Mulberry, Marks & Spencer, Kurt Geiger and Selfridges have said restoring duty-free shopping could boost the economy.
It comes days after Reeves said she wants to become the most “pro-growth” chancellor in UK history. Rishi Sunak abolished duty-free shopping for international visitors in 2021.
Protest: Hotelier Sir Rocco Forte led a protest backed by more than 500 bosses
The Mail and Mail on Sunday have been campaigning to reverse this policy.
Conservatives have refused to heed calls from businesses to eliminate the tax, which is a brake on growth.
The tax is costing the economy more than £11bn a year, according to the Center for Economics and Business Research, as shopping tourists also spend money in hotels, restaurants and theatres.
The Conservatives asked the Office for Budget Responsibility to assess the tax ahead of the March Budget, but ultimately kept it in place.
The Mail on Sunday understands that the Labor Party does not support removing the tax.
The companies want the party, at a minimum, to commit to starting a formal evaluation.
Hotelier Sir Rocco Forte, who led a protest backed by more than 500 business people, said maintaining it would be “a complete mockery” of Labour’s growth promises.
He added: “If the Conservatives don’t do it, the incoming Labor government should do it if it really wants to revive the economy.”
Paul Barnes, of the International Retail Association, which represents companies such as Bicester Village and Harrods, implored Reeves to agree to review the Government’s forecasts.
He said: “She will be pleasantly surprised by the billions of pounds of additional spending and tax revenue that real data shows will be generated.”
Kurt Geiger boss Neil Clifford said the policy had “created a huge hole in the British economy” by hurting the whole country, not just West End shops.
Clifford added: “Brexit was about opening us up to the world and then closing the door on ourselves.”
Marks & Spencer boss Stuart Machin said: “Cities like Paris and Milan are taking full advantage of the decision to add VAT to tourists visiting our cities and this is being felt far beyond retail, hurting our economy. at a time when London’s main shopping streets need to encourage shoppers to return.’
