Boss of Shakespeare's Globe backs calls for tax-free shopping for tourists

Calls for the reintroduction of tax-free shopping for tourists have been supported by the chief executive of Shakespeare’s Globe theatre, who said ticket sales have fallen since it was stopped in January 2021.

Hospitality leaders, including Sir Rocco Forte owner of Rocco Forte Hotels, have warned that tourists are bypassing Britain since VAT refunds for overseas visitors were scrapped following a post-Brexit review of tax policy.

The Times reports that the Southbank theatre’s Neil Constable said: “We at the Globe join in support of this campaign in asking the government to help create a dynamic economy which appeals to foreign investors and visitors.”

Last month a study commissioned by the Daily Mail and Sir Rocco found that reinstating VAT rebates could provide a £10b boost to the economy, fuel the creation of new jobs and provide an extra £2b for treasury coffers.

In April Sir Rocco told The Caterer that tourists were "increasingly voting with their feet".

He continued: "I am seeing this in my own hotel group, where business in Europe has rebounded more strongly post-Covid than it has in the UK. Paris, Berlin and Milan are rubbing their hands with glee at our stupidity."

Kwasi Kwarteng had announced plans to reintroduce tax-free shopping during his short-lived tenure as chancellor last year, but the Treasury later scrapped the move and said it would cost the UK £2b a year.

It is understood the government has drawn comparisons with the US, which does not have a country-wide VAT-free shopping system but remains a top destination for high-spending Chinese tourists.

UKHospitality previously said the original decision to remove tax-free shopping had not considered the impact that deterring people coming to the UK to shop would have on the wider tourism economy.