&w=3840&q=100)
Will UK bring back tax-free shopping? What retailers demand from govt
Making purchases exempt from VAT could result in £3.65 billion ($4.9 billion) of additional spending by visitors from the European Union, the Association of International Retail said in a submission to ministers published Tuesday. That's on top of about £1.5 billion of spending by non-EU visitors the lobby group said was diverted from the UK when it scrapped tax-free shopping in 2021.
The report sent to the Department for Culture, Media and Sport is the latest salvo in a long tussle between retailers and the government. Then Chancellor of the Exchequer Rishi Sunak used the UK's exit from the EU as a chance to end a system that let travelers reclaim the 20% VAT sales tax on their purchases.
Since then, Conservative and Labour governments — with the exception of the short-lived administration of former Prime Minister Liz Truss — agreed with Sunak's assessment that the policy cost the Treasury more than it gained. Subsequent analysis by the Office for Budget Responsibility backed that view.
Reeves faces a fiscal shortfall heading into this year's autumn budget, after expensive U-turns on welfare cuts and amid reduced prospects for growth. That makes any change to her stance on tax-free shopping less likely, even as she faces calls to help companies after she raised payroll taxes this year.
But British retailers argue they have lost out to countries like France and Spain that offer tax-free shopping to non-EU visitors, and have repeatedly put forward the argument that the Treasury is not taking into account the wider uplift in spending in considering the impact of the policy on the public coffers.
Hundreds of retailers including Mulberry Group Plc, Fortnum & Mason Plc and John Lewis signed an open letter to Reeves last year calling for the government to reinstate the policy.
According to the Association of International Retail, the UK would become the only country in Europe offering VAT rebates to 450 million EU consumers. It also cited figures showing visitor spending in the UK was 92% of 2019 levels last year, compared with 106% in Spain and 110% in France.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
11 minutes ago
- Business Standard
Trump plays golf in Scotland as protesters rally against his visit
President Donald Trump played golf Saturday at his course on Scotland's coast while protesters around the country took to the streets to decry his visit and accuse United Kingdom leaders of pandering to the American. Trump and his son Eric played with the US ambassador to Britain, Warren Stephens, near Turnberry, a historic course that the Trump family's company took over in 2014. Security was tight, and protesters kept at a distance wand unseen by the group during Trump's round. He was dressed in black, with a white USA cap, and was spotted driving a golf cart. The president appeared to play an opening nine holes, stop for lunch, then head out for nine more. By the middle of the afternoon, plainclothes security officials began leaving, suggesting Trump was done for the day. Hundreds of demonstrators gathered on the cobblestone and tree-lined street in front of the US Consulate about 160 kilometres away in Edinburgh, Scotland's capital. Speakers told the crowd that Trump was not welcome and criticised British Prime Minister Keir Starmer for striking a recent trade deal to avoid stiff US tariffs on goods imported from the UK. Protests were planned in other cities as environmental activists, opponents of Israel's war with Hamas in Gaza and pro-Ukraine groups loosely formed a Stop Trump Coalition. Anita Bhadani, an organiser, said the protests were kind of like a carnival of resistance. June Osbourne, 52, a photographer and photo historian from Edinburgh wore a red cloak and white hood, recalling The Handmaid's Tale. Osbourne held up picture of Trump with Resist stamped over his face. I think there are far too many countries that are feeling the pressure of Trump and that they feel that they have to accept him and we should not accept him here, Osbourne said. The dual-US-British citizen said the Republican president was the worst thing that has happened to the world, the US, in decades. Trump's late mother, Mary Anne MacLeod, was born on the Isle of Lewis in Scotland and the president has suggested he feels at home in the country. But the protesters did their best to change that. I don't think I could just stand by and not do anything, said Amy White, 15, of Edinburgh, who attended with her parents. She held a cardboard sign that said We don't negotiate with fascists. She said so many people here loathe him. We're not divided. We're not divided by religion, or race or political allegiance, we're just here together because we hate him. Other demonstrators held signs of pictures with Trump and Jeffrey Epstein as the fervour over files in the case has increasingly frustrated the president. In the view of Mark Gorman, 63, of Edinburgh, the vast majority of Scots have this sort of feeling about Trump that, even though he has Scottish roots, he's a disgrace. Gorman, who works in advertising, said he came out because I have deep disdain for Donald Trump and everything that he stands for. Saturday's protests were not nearly as large as the throngs that demonstrated across Scotland when Trump played at Turnberry during his first term in 2018. But, as bagpipes played, people chanted Trump Out! and raised dozens of homemade signs that said things like No red carpet for dictators, We don't want you here and Stop Trump. Migrants welcome. One dog had a sign that said No treats for tyrants. Some on the far right took to social media to call for gatherings supporting Trump in places such as Glasgow. Trump also plans to talk trade with Starmer and Ursula von der Leyen, the European Commission president. But golf is a major focus. The family will also visit another Trump course near Aberdeen in northeastern Scotland, before returning to Washington on Tuesday. The Trumps will cut the ribbon and play a new, second course in that area, which officially opens to the public next month. Scottish First Minister John Swinney, who is also set to meet with Trump during the visit, announced that public money will go to staging the 2025 Nexo Championship, previously known previously as the Scottish Championship, at Trump's first course near Aberdeen next month. The Scottish Government recognises the importance and benefits of golf and golf events, including boosting tourism and our economy, Swinney said. At a protest Saturday in Aberdeen, Scottish Parliament member Maggie Chapman told the crowd of hundreds: We stand in solidarity, not only against Trump but against everything he and his politics stand for. The president has long lobbied for Turnberry to host the British Open, which it has not done since he took over ownership. In a social media post Saturday, Trump quoted the retired golfer Gary Player as saying Turnberry was among the Top Five Greatest Golf Courses he had played in as a professional. The president, in the post, misspelled the city where his golf course is located.
Indian Express
39 minutes ago
- Indian Express
Trump plays golf in Scotland while protesters take to the streets and decry his visit
President Donald Trump played golf Saturday at his course on Scotland's coast while protesters around the country took to the streets to decry his visit and accuse United Kingdom leaders of pandering to the American. Trump and his son Eric played with the US ambassador to Britain, Warren Stephens, near Turnberry, a historic course that the Trump family's company took over in 2014. Security was tight, and protesters kept at a distance wand unseen by the group during Trump's round. He was dressed in black, with a white 'USA' cap, and was spotted driving a golf cart. The president appeared to play an opening nine holes, stop for lunch, then head out for nine more. By the middle of the afternoon, plainclothes security officials began leaving, suggesting Trump was done for the day. Hundreds of demonstrators gathered on the cobblestone and tree-lined street in front of the US Consulate about 100 miles (160 kilometers) away in Edinburgh, Scotland's capital. Speakers told the crowd that Trump was not welcome and criticized British Prime Minister Keir Starmer for striking a recent trade deal to avoid stiff US tariffs on goods imported from the UK Protests were planned in other cities as environmental activists, opponents of Israel's war with Hamas in Gaza and pro-Ukraine groups loosely formed a 'Stop Trump Coalition.' Anita Bhadani, an organizer, said the protests were 'kind of like a carnival of resistance.' June Osbourne, 52, a photographer and photo historian from Edinburgh wore a red cloak and white hood, recalling 'The Handmaid's Tale.' Osbourne held up picture of Trump with 'Resist' stamped over his face. 'I think there are far too many countries that are feeling the pressure of Trump and that they feel that they have to accept him and we should not accept him here,' Osbourne said. The dual-US-British citizen said the Republican president was 'the worst thing that has happened to the world, the US, in decades.' Trump's late mother, Mary Anne MacLeod, was born on the Isle of Lewis in Scotland and the president has suggested he feels at home in the country. But the protesters did their best to change that. 'I don't think I could just stand by and not do anything,' said Amy White, 15, of Edinburgh, who attended with her parents. She held a cardboard sign that said 'We don't negotiate with fascists.' She said 'so many people here loathe him. We're not divided. We're not divided by religion, or race or political allegiance, we're just here together because we hate him.' Other demonstrators held signs of pictures with Trump and Jeffrey Epstein as the fervor over files in the case has increasingly frustrated the president. In the view of Mark Gorman, 63, of Edinburgh, 'the vast majority of Scots have this sort of feeling about Trump that, even though he has Scottish roots, he's a disgrace.' Gorman, who works in advertising, said he came out 'because I have deep disdain for Donald Trump and everything that he stands for.' Saturday's protests were not nearly as large as the throngs that demonstrated across Scotland when Trump played at Turnberry during his first term in 2018. But, as bagpipes played, people chanted 'Trump Out!' and raised dozens of homemade signs that said things like 'No red carpet for dictators,' 'We don't want you here' and 'Stop Trump. Migrants welcome.' One dog had a sign that said 'No treats for tyrants.' Some on the far right took to social media to call for gatherings supporting Trump in places such as Glasgow. Trump also plans to talk trade with Starmer and Ursula von der Leyen, the European Commission president. But golf is a major focus. The family will also visit another Trump course near Aberdeen in northeastern Scotland, before returning to Washington on Tuesday. The Trumps will cut the ribbon and play a new, second course in that area, which officially opens to the public next month. Scottish First Minister John Swinney, who is also set to meet with Trump during the visit, announced that public money will go to staging the 2025 Nexo Championship, previously known previously as the Scottish Championship, at Trump's first course near Aberdeen next month. 'The Scottish Government recognizes the importance and benefits of golf and golf events, including boosting tourism and our economy,' Swinney a protest Saturday in Aberdeen, Scottish Parliament member Maggie Chapman told the crowd of hundreds: 'We stand in solidarity, not only against Trump but against everything he and his politics stand for.' The president has long lobbied for Turnberry to host the British Open, which it has not done since he took over ownership. In a social media post Saturday, Trump quoted the retired golfer Gary Player as saying Turnberry was among the 'Top Five Greatest Golf Courses' he had played in as a professional. The president, in the post, misspelled the city where his golf course is located
The Hindu
41 minutes ago
- The Hindu
Trump plays golfs in Scotland while protesters take to streets, decry his visit
President Donald Trump played golf Saturday (July 26, 2025) at his course on Scotland's coast while protesters around the country took to the streets to decry his visit and accuse United Kingdom leaders of pandering to the American. Mr. Trump and his son Eric played with the U.S. ambassador to Britain, Warren Stephens, near Turnberry, a historic course that the Trump family's company took over in 2014. Security was tight, and protesters kept at a distance wand unseen by the group during Trump's round. He was dressed in black, with a white 'USA' cap, and was spotted driving a golf cart. The President appeared to play an opening nine holes, stop for lunch, then head out for nine more. By the middle of the afternoon, plainclothes security officials began leaving, suggesting Trump was done for the day. Hundreds of demonstrators gathered on the cobblestone and tree-lined street in front of the U.S. Consulate about 160 kilometres away in Edinburgh, Scotland's capital. Speakers told the crowd that Mr. Trump was not welcome and criticised British Prime Minister Keir Starmer for striking a recent trade deal to avoid stiff U.S. tariffs on goods imported from the U.K.. Protests were planned in other cities as environmental activists, opponents of Israel's war with Hamas in Gaza and pro-Ukraine groups loosely formed a 'Stop Trump Coalition.' Anita Bhadani, an organiser, said the protests were 'kind of like a carnival of resistance.' June Osbourne, 52, a photographer and photo historian from Edinburgh wore a red cloak and white hood, recalling 'The Handmaid's Tale.' Osbourne held up picture of Trump with 'Resist' stamped over his face. 'I think there are far too many countries that are feeling the pressure of Trump and that they feel that they have to accept him and we should not accept him here,' Osbourne said. The dual-US-British citizen said the Republican president was 'the worst thing that has happened to the world, the US, in decades.' Mr. Trump's late mother, Mary Anne MacLeod, was born on the Isle of Lewis in Scotland and the president has suggested he feels at home in the country. But the protesters did their best to change that. 'I don't think I could just stand by and not do anything,' said Amy White, 15, of Edinburgh, who attended with her parents. She held a cardboard sign that said 'We don't negotiate with fascists.' She said 'so many people here loathe him. We're not divided. We're not divided by religion, or race or political allegiance, we're just here together because we hate him.' Other demonstrators held signs of pictures with Trump and Jeffrey Epstein as the fervour over files in the case has increasingly frustrated the president. In the view of Mark Gorman, 63, of Edinburgh, 'the vast majority of Scots have this sort of feeling about Trump that, even though he has Scottish roots, he's a disgrace.' Gorman, who works in advertising, said he came out 'because I have deep disdain for Donald Trump and everything that he stands for.' Saturday's protests were not nearly as large as the throngs that demonstrated across Scotland when Mr. Trump played at Turnberry during his first term in 2018. But, as bagpipes played, people chanted 'Trump Out!' and raised dozens of homemade signs that said things like 'No red carpet for dictators,' 'We don't want you here' and 'Stop Trump. Migrants welcome.' One dog had a sign that said 'No treats for tyrants.' Some on the far right took to social media to call for gatherings supporting Trump in places such as Glasgow. Mr. Trump also plans to talk trade with Starmer and Ursula von der Leyen, the European Commission president. But golf is a major focus.
