Britain ‘shoots itself in the foot’ over tourist tax, says Battersea power station boss

The Grade II listed Battersea Power Station reopened last October after Malaysian investors spent billions redeveloping the area into apartments and a new shopping destination. Retailers with stores there include Apple, Chanel and luxury watch brand Breitling.

Murphy, who runs the Battersea Power Station Development Company, said reintroducing duty-free shopping for tourists would encourage more people to visit Britain and would “benefit not just retail, but the wealth of businesses that depend on tourism.” .

Duty-free shopping still applies in EU countries and spending by American and Middle Eastern tourists has risen in France and Italy, while the UK is barely reaching pre-pandemic levels.

Britain is expected to lose over £3bn in tourism spending this year as a result of the tourist tax, according to duty-free shopping company Global Blue.

A Treasury spokesman said: “VAT-free shopping does not directly benefit Brits: it allows foreign tourists who buy items in the UK to claim a VAT refund when they return home.

“The scheme could cost UK taxpayers around £2bn a year at a time when we have already had to make difficult decisions to reduce debt and less than one in ten non-EU visitors used the scheme. above, which shows that it is not a significant attraction. for tourists.”