Two of Britain’s oldest luxury brands have reignited calls for the return of VAT-free shopping for international tourists, warning that President Trump’s sweeping new tariffs could divert American shoppers away from the UK to continental Europe.
William Church, joint managing director of Northampton-based luxury shoemaker Joseph Cheaney & Sons, said Britain now “stands at a self-imposed competitive disadvantage to our European counterparts” following the abolition of the VAT refund scheme in 2021. He urged the government to “reinstate [the scheme] immediately to significantly stimulate badly needed economic growth”.
“The benefits would be strongly felt in the wider economy by making the UK a more economically attractive place to visit,” Church said.
Ian Maclean, executive chairman of John Smedley, Britain’s oldest knitwear manufacturer, echoed the call, stressing that the scheme supported businesses and supply chains across the UK, including in regions beyond London and the South East.
The VAT refund scheme, which allowed non-EU visitors to reclaim the 20 per cent sales tax on purchases, was scrapped post-Brexit—a move that has been roundly criticised across the retail and hospitality sectors. Industry leaders have described its removal as a “crazy, wrong-headed decision” that has damaged Britain’s appeal as a shopping destination.
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