Future Of British Business
London’s Luxury Brands Suffer Tax-Free Shopping ‘Hammer Blow’
- Government scraps policy less than a month after announcing it
- New chancellor tries to reassure markets of fiscal discipline
Luxury goods stores on New Bond Street in London.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
London’s luxury emporiums were up in arms after new Chancellor of the Exchequer Jeremy Hunt scrapped his predecessor’s decision to let foreign visitors claim back value-added tax.
“This short-sighted move is based on inaccurate and incomplete projections,” said Paul Barnes, head of the Association of International Retail, calling the U-turn a “hammer blow to UK tourism and the British high street.”