Heathrow Airport boss joins calls to scrap UK 'tourist tax'

Bosses at Heathrow Airport have backed calls for the reintroduction of VAT-free shopping for overseas visitors ahead of the Spring Budget.

Dale Reeson, director of operations at Heathrow, said he was delighted to join with the British Chambers of Commerce and the Federation of Small Businesses to campaign to scrap the tourist tax and “level the playing field for British businesses”.

The Treasury withdrew from the VAT retail export scheme in January 2021 following Brexit.

This means tourists from non-EU countries are no longer eligible for a refund on sales tax, which they would have paid over the course of their stay.

As it stands, the UK is the only country in Europe not to offer tax-free shopping for visitors from outside the EU.

Hoteliers have warned that tourists are increasingly "bypassing" the UK to visit other destinations offering the tax rebate.

Reeson added: “The UK’s international competitiveness is at stake as tourist spend in the UK is being overshadowed by other European countries, where goods are up to 20% cheaper.

"We must see policy change at the Spring Budget, which would benefit every town and city across Britian."

In February, chancellor Jeremy Hunt signalled he was considering reversing the decision to deny overseas visitors VAT-free shopping, ahead of the Spring Budget on 6 March.

An earlier report from the Centre for Economics and Business Research (CEBR) found that the reintroduction of tax-free shopping for tourists could provide a £10b boost to the economy.

The study, commissioned by the Daily Mail and Sir Rocco Forte, owner of Rocco Forte Hotels, said that reinstating VAT rebates could fuel the creation of new jobs and provide an extra £2b for treasury coffers.