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UK 'tourist tax' has deterred two million visitors, report finds

Britain's economy has taken £10 billion hit after decision to scrap tax-free shopping, economic body finds.

Shoppers queue outside Gucci shop on Bond Street as Londoners await the announcement of a second coronavirus lockdown it's business as usual in the West End with shoppers out and about and the pavements busy with people on what will be the last weekend before a month-long total lockdown in the UK on 31st October 2020 in London, United Kingdom. The three tier system in the UK has not worked sufficiently, to suppress the virus, and there have have been calls by politicians for a 'circuit breaker' complete lockdown to be announced to help the growing spread of the Covid-19. (photo by Mike Kemp/In Pictures via Getty Images)

Gucci has previously called on the government to abandon plans to end tax-free shopping in the UK. Getty Images

Neil Murphy author image

A new report has found that the UK has taken a £10.7 billion ($13.7 billion) hit to its economy after it removed tax-free shopping for foreign tourists.

Analysis by the Centre for Economics and Business Research also found the so-called tourist tax has hit GDP and resulted in the loss of two million visitors.

Big-spending visitors to Britain were previously able to claim 20 per cent back off their luxury purchases, a perk that attracted millions to London and elsewhere in the country.

However, Chancellor Jeremy Hunt scrapped the tax relief in an attempt to plug the gap in Britain's finances after successive economic crises. He said the move would provide revenue worth an estimated £2 billion for the UK Treasury.

However, critics say the decision has deterred wealthy tourists who have opted to go to other destinations for their shopping, such as Paris and Milan, instead of spending their cash in West End hotels, restaurants and theatres .

“We estimate that a fully utilised tax-free shopping scheme could have increased GDP by £9.1 billion in 2022,” the report says. “Applying this figure to 2023's projections, a tax-free shopping scheme could have boosted the size of the economy by £10.7 billion.”

The CEBR calculations estimated that spending eligible for tax-free shopping stood at £6.6 billion last year, rising to £7.7 billion this year.

Assuming all visitors took up the VAT rebates, around £1.1 billion of this would have been returned to customers in 2022, or £1.3 billion in 2023.

It estimated that the cost reduction would have increased visitor numbers by 1.7 million last year, rising to two million in 2023.

“This highlights that the additional activity stimulated by tax-free shopping, and the associated increase to tax revenues from such activity, significantly outweigh the corresponding loss of revenue from sales tax specifically, even in scenarios with lower take-up rates”, the report says.

Analysis by the tax-free shopping data company Global Blue previously showed that tourists visiting Britain from GCC states spent 35 per cent less than they did before the Covid pandemic, but spent double in France and 66 per cent more in Italy.

However, a boom in high-end tourism from American visitors was enough to offset this decline in Britain.

“Tourists engage in other activity beyond their retail purchases, bringing a range of economic benefits that will be felt not only on the high street, but right through the retail supply chain,” said Sam Miley, managing economist at CEBR.

“By making shopping purchases cheaper, tax-free shopping schemes act as an incentive for tourists to visit the UK over other countries.”

Calls have been growing for the current Conservative government to perform an about-turn on the “tourist tax” in a bid to reintroduce growth into the struggling UK economy, which has narrowly avoided a recession in recent months.

In April, Prime Minster Rishi Sunak was challenged by hundreds of businesspeople across Britain over the “spectacular own goal” of a post-Brexit VAT change .

In an open letter, business leaders including Burberry chief executive Gerry Murphy told the Prime Minister his move to scrap the VAT refund for tourists had made Britain the “least attractive” shopping destination in Europe, with every country remaining in the EU still offering sales tax rebates to foreign shoppers.

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Hoteliers fighting back against UK’s first tourist tax in three iconic seaside towns

A group of hoteliers in Bournemouth , Christchurch and Poole are appealing against a tourist tax due to be introduced in the area next week.

The £2 per night levy for overnight stays in Dorset is set to roll out on 1 July as part of plans by Bournemouth, Christchurch and Poole’s Accommodation Business Improvement District (ABID).

If introduced, it w ould be the first seaside tourist tax to be charged in the UK .

Appealing to the Secretary of State against the new charge are 42 hotels that do not support the levy – 56 per cent of the hotels involved in the vote.

The group claim that the nightly visitor charge “financially penalises” the 75 hotels in the seaside resort area, and says only 16 hoteliers voted in favour of the tourist tax introduction.

With the tax set to start next week, hoteliers face charging guests while the appeal process is ongoing.

Levy payments collected in the meantime would not automatically be refunded – a “morally and legally incorrect” move, according to the group.

Officials estimate that the tax will generate £12m for the county in southern England in the next five years.

Appealing hoteliers met with the BCP Council last week to ask to delay the 1 July start date until after the appeal process has been completed.

The appeal group are asking for the ABID team to “see sense, revisit their plans and delay the introduction of the levy whilst our appeal is heard”.

A spokesperson for the group leading the appeal said: “Following the announcement on 14 May that the Bournemouth, Christchurch and Poole Accommodation BID had successfully passed by a single vote, it quickly became clear that a significant number of hotels had not been able to vote and some of these were not even aware that the ballot was taking place.

“If any one of these hotels had they been able to vote, the levy simply wouldn’t have been voted in.”

Graham Farrant, chief executive for Bournemouth, Christchurch and Poole (BCP) council, said: “We are confident the ballot process has been carried out fairly and in line with legal regulations.

“We advised those who are looking to appeal the result to follow the process as outlined in The Business Improvement Districts (England) Regulations 2004.”

The Independent has contacted ABID for comment.

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british tourist tax

Tourism tax rates in United Kingdom

Recent News

28 May 2024 | Chester has proposed implementing a visitor charge on overnight visitors from 1 January 2025. The charge would be £2 per room, per night (excluding VAT) and currently 27 hotels would be affected. This is subject to approval by businesses part of the Accommodation BID. Vote is planned for June/July and result to be announced on 12 July. Further information including the list of hotels within scope (on page 22 in the business plan).

28 March 2024 | Cambridge has proposed implementing a visitor charge on overnight visitors from 1 January 2025. The charge would be £1.67 per room, per night (excluding VAT) for 2025/2026 and £2.50 per room, per night (excluding VAT) for 2027,2028,2029. Approximately 35 hotels would be affected. This is subject to approval by businesses part of the Accommodation BID. Vote is planned for June/July. Further information on proposal .

Manchester is the only destination in the UK that currently levies a tourist tax on visitors directly. However, Bournemouth, Christchurch, Poole will introduce on 1 July 2024 and Cambridge and Chester have proposed introducing from 1 January 2025 (information in Recent News section above).

The national Governments of Scotland and Wales have proposed to pass legislation to allow local authorities the discretion to implement should they choose to. Subject to Parliamentary approval, it is currently expected that the earliest a visitor would pay the levy in Scotland is early 2026 and in Wales 2027.

Manchester – £1 per room, per night (excluding VAT) applicable to visitors staying in accommodation establishments with a ratable value of at least £75,000. Known as the ‘City Visitor Charge’ 74 properties (mainly within the A57 (M) ring road) currently meet this criteria (list of properties here ). Further information on the levy can be found  here .

Bournemouth, Christchurch, Poole (from 1 July 2024) – £2 per room, per night (excluding VAT) applicable to visitors staying in accommodation establishments with a ratable value of at least £40,000. Further information on the levy can be found  here .

The national government has proposed to pass legislation to allow local authorities the discretion to implement a visitor levy should they choose to. It is intended for the visitor levy to be applicable to visitors staying in commercially-let accommodation subject to approval by the Welsh Parliament (Senedd).

Consultation ended in December 2022 and a Bill is currently expected to be introduced to the Senedd in autumn 2024. Due to legislative process, the Welsh Government estimate that (if the Bill is passed) the earliest a visitor levy will be in place in any authority in Wales is in 2027. Further information can be found here .

The Visitor Levy Bill , originally intended to be introduced in 2020 following consultation , was introduced to the Scottish Parliament in May 2023. The Bill proposes to allow local authorities the discretion to implement a visitor levy should they choose to.

The Bill (as introduced) intends for the levy to be applicable to visitors staying in ‘overnight accommodation’ and the rate calculated as a percentage of the cost of stay. Further information can be found in Part 2 of the Visitor Levy Bill (May 2023) . Please note the Bill is subject to Parliamentary approval and the rate calculation is not yet confirmed, as well as whether any exemptions may apply. Also, in October 2023 the Scottish Government announced their intention for a ‘cruise ship levy’ which may be added to the Visitor Levy Bill at a later date.

The Bill is currently being examined by the Local Government, Housing and Parliament committee . On 31 October 2023, ETOA provided evidence to this committee on our research of tourism taxes in Europe. Should the various stages be completed as expected, the Bill will be voted on late spring 2024 and if the Bill passes, Royal assent would follow a month later. Thereafter, local authorities electing to implement the levy must consult locally. Once that consultation ends, there would be 18 months prior to full implementation. Therefore, it is currently expected that the earliest a visitor would pay the levy would be in early 2026 .

The surrounding debate remains complex. Will wild camping (legal in Scotland) see a surge as organised campsites are to be subject to the levy? Should access be charged to manage volume on the North Coast 500  where traffic conditions can be highly problematic? We are in contact with the Government Visitor Levy team and Parliamentary officials and will publish updates on this page.

While best efforts have been made to verify the accuracy of the information, the information displayed should be used as guidance only.

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This UK city could be next to introduce a tourist tax

An extra cost of £2 per room per night may be added to hotel stays in Cambridge

Annie McNamee

Tourism can be a great thing. In 2019, before the world collapsed into chaos, the tourism industry generated a whopping £106 billion for the British economy. People come from across the world to enjoy this country’s history, idyllic countrysides, and anything that looks vaguely Harry Potter-ish. But while tourists spend a lot of cash, they can also bring with them some problems for locals. 

Venice is sort of the poster child for what’s known as overtourism, which is exactly what it sounds like. Essentially, the Italian city got to a point where there were just too many people visiting it, polluting its canals, causing damage to its centuries-old streets, and creating a housing shortage for the people who actually lived there. Last year Venice was added to UNESCO’s list of endangered sites  and a few months ago they announced a €5 fee for anyone wishing to day-trip to the city – and they aren’t the only place to charge some form of tourist tax. 

Cambridge has announced plans to take after Venice and a host of other European cities like Berlin , Vienna , and Budapest . The city’s tax would come in the form of a levy on hotel rooms, meaning that visitors to certain hotels would be charged an extra £2 per room per night. Some estimates think this could raise anywhere up to £2.6 million a year for the city, depending on how many people are staying in the hotels. 

A similar scheme was successfully trialled in Manchester last April. Visitors in Manny are now charged an extra £1 on top of the cost of their hotel room unless they can prove they are travelling for business. 

For the plans to go through, an Accommodation Business Improvement District (ABID) must first be formed. According to Jemma Little, who is the economic development manager at Cambridge Council, for this to happen, ‘there needs to be a ballot of the hotels within that catchment area [of Greater Cambridge]... It’s not something the council can decide.’ 

Once created, eligible hotels within the district would collect the levy from customers. Little explained that ‘the smaller businesses won’t be involved at this stage. It’s going to be hotels with 10 or more bedrooms where the primary operation is to be a hotel.’

If all goes to plan, the tax could become a reality as soon as next year. If you’re planning a trip to Cambridge, there will never be a better time to do it than right now. Use this as your sign to visit. And while you’re there, try out some of Time Out’s favourite places to eat and things to do . 

Staycations according to Time Out

We at Time Out know about good holidays. If you’re currently planning your next UK break and don't know where to go, we’ve got you covered. Why not try one of   Time Out’s favourite things to do in the country , or embark on one of these   top rated Great British road trips?  For something a bit more out there, have a look at   these cool islands scattered across England , or check out   these haunted places you can visit .

Did you see that   this Manchester rooftop bar has been named one of the best in the world ?

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british tourist tax

Sunak’s tourist tax ‘means Rolex shoppers have given up on Britain’

W ealthy foreign shoppers seeking a Rolex have given up on Britain in favour of European cities such as Paris and Milan, the boss of the UK’s biggest luxury watch retailer has said.

Brian Duffy, the chief executive of Watches of Switzerland, said the decision to axe VAT-free shopping for tourists by Rishi Sunak in the wake of Brexit had hammered its UK business. 

He said: “We have a high average selling price, which means that 20pc makes a hell of a difference. If you’re looking at spending £10,000, it’s £2,000.”

“Clearly, the tourists coming [such as] Americans ... will choose when they’re coming to Europe to do their shopping in Paris and Barcelona, and not London.”

Since VAT-free shopping was axed in 2020, luxury retailers have called on ministers to restore it.

They argue that the decision has damaged British businesses and made the country less appealing to visitors who used to come and spend large amounts of money here, earning it the moniker “tourist tax”.

Mr Duffy said: “We’re the only country in Europe that doesn’t offer [the perk].

“So either we’ve figured out something that nobody else knows, or it’s another burden for retail to deal with.

“We want to be an attractive destination for tourists and part of touring and being on holiday is shopping.

“It just seems crazy to us.”

He argued the absence of VAT-free shopping had impeded the UK’s recovery from the pandemic.

“The UK just simply missed out as an economy. Europe disproportionately benefited.”

His comments come as Watches of Switzerland posted a 2pc rise in total sales over the year to April 1, but said sales in the UK and Europe were down 5pc.

Statutory profits before tax fell 40pc to £92m.

As well as the impact of the tourist tax, the company has had to grapple with price increases linked to the rising price of gold .

And “aspirational” shoppers are spending less money because of high interest rates and the cost of living crisis, he said.

Mr Duffy said: “We’ve had a wee bit of a perfect storm if you look back, particularly the second half of the calendar [year] 2023.”

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Sunak’s tourist tax ‘means Rolex shoppers have given up on Britain’

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Money blog: 27 areas where Aldi wants to open new stores as a 'priority'

Welcome to the Money blog, your place for personal finance and consumer news and advice. Let us know your thoughts on any of the topics we're covering using the comments box below.

Friday 28 June 2024 01:36, UK

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Is your area crying out for a new supermarket to broaden your options and push prices down with a bit of competition?

Last month, the UK’s fourth largest supermarket - Aldi - asked shoppers to get in touch with their views on where it should open new stores.

The discount chain says it received thousands of replies, which it has used to hone its search for new store sites.

At the moment, Aldi has more than 1,020 stores. It says it wants more than 1,500 stores across the UK in the long run.

The 27 areas of priority to Aldi are:

  • Woodford, London
  • Surbiton, London
  • South Croydon, London
  • Notting Hill, London
  • Walthamstow, London
  • Beckenham, London
  • Bromley, London
  • Barnet, London
  • Redhill, Surrey
  • Aldershot, Hampshire
  • Haywards Heath, West Sussex
  • Burgess Hill, West Sussex
  • Chatham, Kent
  • Cheadle, Greater Manchester
  • Chorlton, Manchester
  • Formby, Liverpool
  • Newark, Nottinghamshire
  • Chesterfield, Derbyshire
  • Wellingborough, Northamptonshire
  • Rayleigh, Essex
  • Brentwood, Essex
  • Dorchester, Dorset
  • Clarkston, Scotland
  • Cathcart, Scotland
  • Penzance, Cornwall
  • Warwick, Warwickshire
  • Bath, Somerset

Jonathan Neale, managing director of national real estate at Aldi UK, said: "We want to make high quality food accessible to all, but we can’t do that while there are still some towns and areas that either don’t have an Aldi or have capacity for additional stores.

"We recognise there is huge demand in certain regions for more stores, which is why we decided to get the public’s input on our latest list of priority locations."

Which?, the consumer website and magazine, has ranked Aldi as the cheapest supermarket in the UK consistently this year.

Using a typical list of popular items, Which? ranked Aldi as the cheapest place to shop from January to May - with rivals Lidl coming in second.

However, for a longer list of items and a bigger shop, Asda and Morrisons have typically been the top two for Which? this year.

There could be good news on the horizon for borrowers, as an economist says the Bank of England is likely to cut interest rates in August.

Michael Saunders, a former member of the Monetary Police Committee (MPC), said the Bank has "clearly signalled" it wants to cut rates soon "if data are okay".

He told the Reuters Global Markets Forum that inflation and wage figures would need to align with the MPC's forecasts back in May.

"If so, I would expect the rest of the internal [members of the MPC] to move as a bloc to vote for a cut," he said, saying that markets had been given enough warning.

The BoE  held interest rates  at 5.25% for the seventh time in a row last week despite inflation falling to its target of 2%.

Mr Saunders predicted that the Bank would slash rates seven times in increments of 25 points by the end of next year, bringing the headline rate "close" to what he calls a neutral rate of 3.5%.

"I expect two to three cuts this year, the rest next year - again, depends a bit on the monthly data," he said.

The government has accredited three new forms of ID for purchasing restricted goods and services.

Lloyds Bank Smart ID, Post Office EasyID and Yoti ID can now be used to watch age-restricted films in cinemas, enter gambling premises, or pay for tattoos and tanning salons.

They cannot be used to buy alcoholic drinks in pubs and shops, but are recognised when buying alcohol online, along with tobacco, vapes, lottery tickets and fireworks.

"More UK businesses can now accept our Digital IDs to reduce the risk of fake IDs, increase compliance and improve the customer experience," said Robin Tombs, CEO of Yoti.

He said more than four million people have already downloaded a Digital ID app. 

"This is a strong sign that people are ready to embrace reusable Digital IDs and want a more secure, private and convenient way to prove who they are."

Each of the Digital ID apps includes the approved PASS hologram.

Most of us know the feeling of rushing back to your car when you realise your ticket is about to run out.

The good news is, new rules mean you won't have to race back quite as breathlessly in future.

Drivers are to get a 10-minute grace period when their time runs out at private car parks.

The changes are coming in after industry bodies the British Parking Association (BPA) and the International Parking Community (IPC) published a new code of conduct.

However, the AA said it still leaves room for drivers to be ripped off because it misses out "desperately needed" measures such as a cap on charges.

Read the full story below...

The electric carmaker Tesla is recalling more than 11,000 of its new Cybertruck vehicles after safety regulators found a potentially dangerous fault with its giant windscreen wiper. 

The US National Highway Traffic Safety Administration also said a trim in the boot may be improperly attached. 

"Excessive electrical current can cause the front windshield wiper motor controller to fail," the safety administration said in a recall acknowledgement letter. 

Tesla said it would replace the wiper motor at no cost to owners. 

It comes after nearly 4,000 Cybertrucks were recalled in April to fix an accelerator pedal pad that could come loose. 

Mass production of the vehicle, which starts at a price of $79,990 (£63,130), is expected to start next year. 

It's not yet known how many trucks have gone to consumers, but the Blade Runner-inspired car has been plagued by problems. 

Customers of both Tesco and OVO Energy are entitled to 2,500 free Clubcard points, the supermarket has announced.

The points can be redeemed as a £25 voucher or at double their value with Clubcard reward partners.

Customers can unlock the points by linking their accounts with both companies.

"The cost of living remains a key challenge for households and our partnership with Tesco is one of the many ways in which we are giving back to our customers with rewards that they can spend how they choose," said Mat Moakes, chief commercial officer at OVO.

New customers can link their Tesco Clubcard account when they sign up as an OVO customer, while existing OVO customers can log into their account, go to their profile, click "our partners", and select the Tesco Clubcard logo.

Want to see a show in London this summer without breaking the bank? 

You're in luck - as new data has revealed the most affordable musicals to see in the capital right now. 

The data, collated by theatre ticket site SeatPlan , shows the most affordable musical to see in London right now is Two Strangers (Carry A Cake Across New York), with the average cheapest ticket price at £17.90. 

The rom-com musical follows a British boy (Dougal), who lands in New York for his dad's second wedding. 

At the airport, he meets the bride's sister, and a quirky, offbeat love story ensues.

Also in the top 10 are Marie Curie The Musical (£20), Guys And Dolls (£23.90) and Sister Act (£26.40). 

Shows are ranked by the average price of the cheapest ticket, with the top ranked show having the lowest price.

On the flip side, the data also revealed the most expensive tickets, by analysing internal pricing data for musicals from SeatPlan.com. 

Musicals including Cabaret (£85.10), Mean Girls (£64.60) and Starlight Express (£43.70) make up this list...

If you've been reassured by positive recent news on inflation and a widely anticipated cut in interest rates later this year, unfortunately the Bank of England has a worrying update for mortgage payers.

About three million UK households are still set to witness hikes in their mortgage repayments over the next two years, the Bank has said.

Its Financial Policy Committee (FPC) added there are likely to be "very large increases" of more than 50% for the mortgages of around 400,000 households.

But the central bank stressed that UK lenders are still in a strong position to support households and businesses, even if the economic backdrop worsens.

The concerning update is in the Bank's latest Financial Stability Report.

It also showed that most households have already had an increase in their mortgage rates since borrowing costs began rising substantially in 2022.

Why is the outlook so bad if interest rates are expected to fall?

Interest rates are at a 16-year-high of 5.25%, with the central bank voting to maintain the figure for a seventh consecutive meeting earlier this month.

But many economists have predicted the base rate could be reduced at the Bank's next vote in August.

However, at the moment, around 35% of households with mortgages, or more than three million, are paying below 3% for a range of reasons - like existing deals which pre-dated the recent crisis - and are expected to see an increase between now and the end of 2026.

A typical household rolling off a fixed-rate mortgage before the end of 2026 is due to face a jump of around £180 a month, the report said.

It highlighted that an "increasing proportion" of households have been choosing to borrow over a longer period of time, reducing monthly repayments but leaving them with more debt to service over time.

Higher mortgage rates have resulted in many households and renters reducing their savings, the Bank also found.

PrettyLittleThing is facing more criticism after announcing it would issue refunds on delivery subscriptions for accounts it has banned for returning too many items.

The online fashion giant says it will refund outstanding gift cards and store credit, as well as £9.99 to closed accounts which had already purchased its royalty service entitling them to unlimited next day delivery for a year.

The company said: "We have noticed an extremely high returns rate from a small pool of customers who have demonstrated behaviours that were inconsistent with what we experience with the rest of our customer base.

"The actions taken are not designed to limit our customers who do need to return or deter them from returning, it was taken to address a small proportion of customers who have a high returns rate."

PrettyLittleThing added it does not plan to close any further accounts.

Some customers were not happy with the response, with one posting on X: "This is bullshit my last return was December 2023... and of course you turned off the comments."

Another wrote: "PrettyLittleThing expects us to order our clothes twice because their sizing is off and is closing people's accounts because of frequent returns. What a way to ruin your own business."

By  James Sillars , business reporter

Amazon was grabbing attention overnight.

It's become the fifth US company to reach a $2trn market value milestone.

Can you name the others? Answers below!

Analysts are crediting strong demand for technology-related stocks amid the rush for AI.

They also point to the growing hope among investors for a late summer/early autumn interest rate cut by the US central bank.

Amazon's shares ended the session on Wall St almost 4% up at $193 apiece.

The FTSE 100 has had a fairly muted start after falling almost 0.3% yesterday.

The index was one point up at 8,226 in early dealing.

In the wider market, Halfords stock was trading 6% lower.

The cycle sales and motor-focused retailer had earlier reported a fall in annual profits of almost a fifth and said that trading remained "soft".

The message to the market from Currys, the electricals chain, was more upbeat.

It revealed a 10% lift to its bottom line in the year to 27 April and said it was more confident about demand ahead.

Currys shares were 1% down, however, potentially reflecting concerns that its profit performance was not driven by higher sales.

Before I go... the answers to the $2trn+ club question above, as promised - the other members of this elite grouping are: Microsoft, Apple, Nvidia and Alphabet.

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british tourist tax

What is the tourist VAT tax and why is Duty Free allowance being cut?

England Enters Tier System After Second Coronavirus Lockdown Ends- Tier Two

Business leaders in London and across the UK are up in arms about a new “ tourism tax ” that they say will be a disaster for the West End and other popular destinations around Britain.

They have even warned it could do more damage to stores that rely on tourists than covid and Brexit combined.

What is the new tourist VAT tax?

For many years tourists from outside the European Union have been able to claim a refund of the VAT they have paid on shopping carried while in the UK. This means they can get back 20 per cent of what they paid in the shop as they leave the country if they fill in a paper form at the airport.

Retailers had hoped this perk would be extended to visitors from the EU after Brexit. Instead the Government announced in September it will be axed altogether, effectively making British shops a fifth more expensive overnight for visitors from countries such as China, America or Kuwait.

What has Rishi Sunak said about the Duty Free allowance

The Chancellor has not addressed the issue directly yet despite a huge outcry from the retail, tourism and aviation industries. However a consultaton document from the Treasury in September said it was “a costly system to maintain with unclear economic benefits and is burdensome for exit points...it does not benefit the whole of GB equally, with purchases largely centred in London.”

It estimates that the perk - officially known as the VAT Retail Export Scheme - costs the Exchequer around £500 million a year, increasing to £1.4 billion if it was extended to EU shoppers.

When do the changes come in?

The scheme will end on the stroke of midnight on the 1 January

How will the VAT tax affect tourism in the UK?

Estimates by business bodies such as the Association of International Retail suggest that more than one million high psending tourists will be deterred from visiting Britain, or at the very least, reduce the number and duration of their visits.

 The knock on effect could lead to 40,000 job losses and £1 billion less investment in Britain. They also argue that the Treasury will end up collecting less tax overall because of lower spending in hotels and restaurants.

Now northern business chiefs warn: tourist tax will hit us hard too

Now northern business chiefs warn: tourist tax will hit us hard too

Shops collapsing, jobs axed: It’s time to halt mad tourism tax, Rishi

Shops collapsing, jobs axed: It’s time to halt mad tourism tax, Rishi

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COMMENTS

  1. Manchester becomes first UK city to impose 'tourist tax'

    1 April 2023. The scheme is excepted to generate £3m. Manchester has become the first UK city to launch a "tourist tax" for visitors. The City Visitor Charge will mean people face an extra £1 ...

  2. Which UK holiday spots will start taxing tourists?

    However, there are some places in the UK that have implemented or are planning to introduce a form of tourist tax. Although the BCP area is the first seaside resort to introduce the tax, other ...

  3. Manchester's 'tourist tax' raises £2.8m after first year

    About £2.8m has been raised from visitors to Manchester a year after the city became the first in the UK to launch a "tourist tax". The City Visitor Charge, a £1 per room, per night fee, was ...

  4. What is the 'tourism tax' affecting London's economy and how might it

    The VAT paid by visitors to the UK is different from how tourist tax works in other cities. For example, Manchester introduced a tourist tax in April, which charges visitors to the city £1 per ...

  5. This UK city will soon charge tourist tax. Where else in ...

    Barcelona, Spain, has been charging a regional tourist tax and additional city-wide surcharge since 2012. On April 1 2023, the municipal fee will rise by €1 to €2.75 per night.

  6. Bournemouth, Christchurch and Poole hotels vote for 'tourist tax'

    The first coastal 'tourist tax' in the UK is set to be introduced in Dorset. The tax, for visitors to Bournemouth, Christchurch and Poole will be launched on 1 July. Hoteliers voted in favour of ...

  7. Tourist taxes in the UK

    The levy is 1.6% of a property's rateable value, rising to 4.5% in 2024/25 and 2025/26. It is expected to raise £939,000 per year in the latter two years. The levy is administered by Liverpool BID Company, which already operates a 'retail and leisure' BID and a 'culture and commerce' BID.

  8. Manchester's £1-a-night tourist fee arrives, but how does it work

    The local tax is €3.50 (£3) for guests staying in a five-star hotel. The city fee increased to €2.75 (£2.42) on April 1 and will increase again to €3.25 (£2,85) as of that same date in 2024.

  9. UK 'tourist tax' has deterred two million visitors, report finds

    A new report has found that the UK has taken a £10.7 billion ($13.7 billion) hit to its economy after it removed tax-free shopping for foreign tourists.. Analysis by the Centre for Economics and Business Research also found the so-called tourist tax has hit GDP and resulted in the loss of two million visitors.

  10. Hoteliers fighting back against UK's first tourist tax in ...

    If introduced, it would be the first seaside tourist tax to be charged in the UK. Appealing to the Secretary of State against the new charge are 42 hotels that do not support the levy - 56 per ...

  11. Europe delays travel entry charges until 2025

    ETIAS will join the myriad accommodation and "tourist taxes" that are already charged around Europe. ... Manchester became the first UK city to introduce a £1 ($1.30) tax on overnight stays ...

  12. Tourist tax rates in United Kingdom

    Manchester is the only destination in the UK that currently levies a tourist tax on visitors directly. However, Bournemouth, Christchurch, Poole will introduce on 1 July 2024 and Cambridge and Chester have proposed introducing from 1 January 2025 (information in Recent News section above).

  13. Manchester to bring in 'tourist tax' for visitors

    Manchester is to introduce a "tourist tax" for people making overnight stays in the city. Some 74 hotels and guesthouses have signed up to the scheme, which will see people pay an extra £1 per ...

  14. This UK city could be next to introduce a tourist tax

    The city's tax would come in the form of a levy on hotel rooms, meaning that visitors to certain hotels would be charged an extra £2 per room per night. Some estimates think this could raise ...

  15. UK tourist tax will only work with hotel VAT cut, warn MPs

    The introduction of a visitor tax at the UK's most popular tourist destinations can only work if value added tax is cut for hotels, say MPs. The All Party Parliamentary Group for Hospitality ...

  16. Sunak's tourist tax 'means Rolex shoppers have given up on ...

    Wealthy foreign shoppers seeking a Rolex have given up on Britain in favour of European cities such as Paris and Milan, the boss of the UK's biggest luxury watch retailer has said. Brian Duffy ...

  17. Wealthy foreigners step up plans to leave UK as taxes increase

    There were 68,800 individuals claiming non-dom status on their tax returns in 2022, according to the most recent estimates from HM Revenue & Customs, the UK tax agency, but a lag in the data makes ...

  18. Money blog: 27 areas where Aldi wants to open new stores as a 'priority

    Customers of both Tesco and OVO Energy are entitled to 2,500 free Clubcard points, the supermarket has announced. The points can be redeemed as a £25 voucher or at double their value with ...

  19. Everything you need to know about the tourist VAT tax

    What is the tourist VAT tax and why is Duty Free allowance being cut? Business leaders in London and across the UK are up in arms about a new " tourism tax " that they say will be a disaster ...

  20. Kenya: What's behind the deadly protests?

    06/26/2024 June 26, 2024. Proposed tax hikes are just one factor that has prompted Kenya's nationwide protests. Citizens are unhappy about the rising cost of living, and have accused the president ...

  21. NHS paying the price for boom in weight-loss surgery ...

    Doctors at the British Medical Association's (BMA) annual conference in Belfast on Tuesday said an increase in the sugar tax was needed to fund more weight-management services and put an end to ...

  22. Wales tourist tax: What is it and how will it affect me?

    What is a tourism tax? Getty Images. The tourism sector was worth about £5bn in 2019 in Wales, according to the Welsh government. A tourism tax, or levy, is a charge which would need to be paid ...

  23. Elektrostal

    In 1938, it was granted town status. [citation needed]Administrative and municipal status. Within the framework of administrative divisions, it is incorporated as Elektrostal City Under Oblast Jurisdiction—an administrative unit with the status equal to that of the districts. As a municipal division, Elektrostal City Under Oblast Jurisdiction is incorporated as Elektrostal Urban Okrug.

  24. Moscow luxury cars rental services (car hire)

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  25. The new costs of travel that tourists should know

    And more are on the way. Last month Bali began charging international visitors an entry tax of 150,000 rupiah (£7.50). Venice recently imposed a fee of up to €5 for day visitors and Hawaii's ...

  26. Zheleznodorozhny, Russia: All You Need to Know Before You Go (2024

    Can't-miss spots to dine, drink, and feast. Zheleznodorozhny Tourism: Tripadvisor has 1,133 reviews of Zheleznodorozhny Hotels, Attractions, and Restaurants making it your best Zheleznodorozhny resource.

  27. The 10 Best Things to Do in Elektrostal

    9. SmokyGrove. 10. Gandikap. 11. Papa Lounge Bar. 12. Karaoke Bar. Things to Do in Elektrostal, Russia: See Tripadvisor's 802 traveller reviews and photos of Elektrostal tourist attractions.

  28. St Ives considers 'tourist tax'

    BBC Spotlight/BBC Politics Show. One of Cornwall's most popular holiday destinations is considering a "tourist tax". Mayor of St Ives Johnnie Wells said they were taking to holiday firms about a ...