Now former tourism minister tells Rishi Sunak ... Ditch your tax on tourists!

Tracey Crouch MP
Tracey Crouch, the ex-tourism minister, joined a group of fellow Tories and all the main Opposition parties by calling for a complete rethink of the Treasury’s plan 
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A Former minister today called on Chancellor Rishi Sunak to ditch his tourism tax, saying it will “undermine” the UK in the battle to attract high-spending visitors to the UK.  

Tracey Crouch, the ex-tourism minister, joined a group of fellow Tories and all the main Opposition parties by calling for a complete rethink of the Treasury’s plan to scrap the tax-free shopping perk.

“Shopping is a massive part of our tourism economy. The impact of this change in VAT shouldn’t be underestimated. It could seriously undermine our competitive advantage with other EU countries,” she said. “I hope Government recognise this before it’s too late.”

MPs representing all the regions of the UK are warning that the tax change will hit jobs in shopping hotspots such as London, Edinburgh, York and Manchester, and also at traditional manufacturers of luxury goods.

Felicity Buchan, the MP for Kensington, said: “I have real concerns that these changes will be negative for London, for manufacturing and airports in the regions and for the Treasury’s total tax take. In London, this will be a blow to our high streets, our hotels and restaurants, many of which rely on these visitors.”

Mark Logan, MP for Bolton North East, said: “When tourism picks up again in 2021 I want to be able to tell international tourists, particularly those from the Middle East and the Far East, that Greater Manchester has a better shopping offer than the rest of Europe.  

“Ending tax-free shopping impedes Bolton’s plans for the future.”

Cities of London and Westminster MP Nickie Aiken, who is hosting a Commons debate on the high street on Thursday, said: “We need to attract tourists back to the UK after the pandemic — and taking away their 20 per cent shopping discount will make that harder.”

Labour, Liberal Democrat MPs and Scottish Nationalists are also calling for Mr Sunak to U-turn. Mr Sunak claimed the move would add £500 million to Treasury coffers, but MPs in all the major parties believe he failed to take account of the impact on sectors like hospitality.

A study by the Centre for Economics and Business Research estimates the change could cost 41,000 jobs and drive away £2 billion in spending by wealthy tourists. France slashed its equivalent tax rates on tourist shoppers within days of Mr Sunak’s announcement.

A Treasury spokesman said: “As we’ve consistently said, extending VAT Retail Export Scheme to the EU would mean subsidising the shopping of EU visitors at a cost of over £1 billion.”

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