The boss of Jigsaw Beth Butterwick has said Britain is now the “black sheep” of Europe by not offering tax-free shopping incentives.
The chief executive of the high street fashion retailer said told The Times that London was being left behind as tourists turn to Paris, Madrid and Milan to shop instead.
“From left-wing governments in Spain to Conservatives in Italy, European countries have put competitive financial incentives in place to lure international shoppers. The UK is the black sheep,” she said.
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Following Brexit, the government axed VAT-free shopping for tourists visiting Britain, meaning international visitors can no longer claim back 20% VAT.
The move has been slammed by many luxury retailers with Mulberry going so far as shuttering its Bond Street store as tourist demand waned.
Last week, Harrods revealed it had swapped some of its most expensive handbags with £250 versions in airport shops as it said the removal of the tax-free scheme had detered wealthy overseas customers.
Last month data from the Centre for Economics and Business Research (CEBR) revealed the “tourist tax” is costing the UK £10.7bn in lost GDP and had put off two million tourists from visiting the UK per year.
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The position in which the UK by its own action finds itself in is highlighted by a recent report by payment company Planet which highlights that France now accounts for almost half (46 per cent) of tax-free spend in Europe, up from 30 per cent in 2020. As you sow so shall you reap.