Jospeh Cheaney, John Smedley join chorus of calls for VAT-free shopping return
Luxury knitwear specialist John Smedley and luxury footwear brand Joseph Cheaney & Sons have revived calls for its return amid fears that President Trump's tariff regime will drive American shoppers to other European countries.
William Church, managing director of Joseph Cheaney & Sons, has called for the refund scheme to be reinstated 'immediately to significantly stimulate badly needed economic growth', The Times newspaper reported.
He said Britain 'stands at a self-imposed competitive disadvantage to our European counterparts' without the scheme, which was scrapped in 2021 as part of Brexit.
'The benefits would be strongly felt in the wider economy by making the UK a more economically attractive place to visit,' he added.
Ian Maclean, executive chairman of John Smedley also told the newspaper that the scheme 'benefits businesses and supply chains in many different places, including the north, and the government should recognise this in its thinking.'
The scrapping of the scheme, which allowed international shoppers to reclaim 20% VAT on purchases, has proved hugely unpopular among the UK's retail and hospitality industry.
Various reports have shown what a spectacular own goal it was given that the money the government thinks it's retaining by not giving VAT refunds is dwarfed by the amount not being spent in the UK by tourists who choose to go shopping in other countries.
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