UK Chancellor Jeremy Hunt has initiated a review of the so-called 'tourist tax' by the Office for Budget Responsibility (OBR), signaling a potential policy reversal that could positively impact the British retail and leisure sectors. The review comes ahead of the Spring Budget and follows a call from 420 business leaders for the government to reconsider the policy. Advocates for the change argue that reinstating tax-free shopping for visitors is crucial for the UK economy, claiming that its removal costs the economy £10.7 billion annually and deters 2 million tourists each year. The policy change is expected to provide a boost not only to retail but also to hospitality, taxi services, and hotels, positioning London as a leading European destination.
“I welcome the OBR review. I do think it will show that London in particular is feeling the adverse effects of not having tax free shopping," Conservative MP for Cities of London and Westminster @twocitiesnickie Aiken https://t.co/JrUFbd1EZo
“This review by the OBR lays the ground for the Chancellor to scrap the tourist tax within weeks, which would encourage more overseas visitors to boost spending in the UK and drive growth as we head towards summer," John Dickie, CEO of @_BusinessLDN https://t.co/JrUFbd1EZo
After Jeremy Hunt asks OBR to review 'tourist tax,' former London minister @scullyp says: "I hope that this will lead to it being scrapped, if possible at the Budget,” stressing the move would benefit 'ordinary Londoners' in hospitality sector and more.. https://t.co/JrUFbd1EZo
Jeremy Hunt urged to scrap 'tourist tax' within weeks at the March Budget and give London economy a boost https://t.co/JrUFbd1EZo
Jeremy Hunt urged to scrap 'tourist tax' within weeks and give London economy a boost https://t.co/V4GWbXKTDt
Hopes rise over end to the tourist tax as Jeremy Hunt orders review to investigate whether it costs Britain more than it raises https://t.co/BRQuaW5gez https://t.co/D2JmiRVRMY
Major business orgs, and leaders from travel & tourism sector agree tax free shopping for visitors would raise more £ for the Treasury and help us compete with Paris, New York, Dubai and other cities. Would be a boost to cities and towns across the UK. @MayorofLondon https://t.co/Vkkzr8tgik
The removal of tax-free shopping for visitors costs UK economy £10.7bn/yr and deters 2 million tourists annually. Glad the Government has been listening to businesses and is considering reinstating this important economic driver for retail & hospitality https://t.co/WVoJGZYh4H https://t.co/fWa1FjL5XJ
Excellent news. Tax-free shopping in London has a significant knock-on effect for hospitality, taxi drivers, hotels and London as a leading European destination. Dynamic modelling of these effects is vital so thank you to the Chancellor for looking again. https://t.co/zuibBh2HCz
Jeremy Hunt authorises OBR review of ‘tourist tax’ https://t.co/vT8RF6upmX via @ft
The so-called ‘tourist tax’ is under review ahead of the Spring Budget, indicating the Treasury could be set to ditch the policy in a boost for Britain’s retail sector. https://t.co/HQ0KzlBm7a
Jeremy Hunt authorises OBR review of ‘tourist tax’ https://t.co/IDR4U2xmcS
I want even more Londoners & visitors to enjoy everything our city has to offer—that’s why I’ve asked TfL to trial off-peak fares all day on Fridays. By delivering more affordable travel we can help Londoners *and* boost business for our city’s hospitality and cultural venues. https://t.co/5oIZpMdWYH
Jeremy Hunt has ordered a review into the so-called “tourist tax” in the clearest sign yet that the Treasury is on the cusp of a major policy reversal that could deliver a much-needed boost to Britain’s retail and leisure industries. https://t.co/mp774cOSJL
Big step forward in the campaign to scrap the tourist tax and restore tax-free shopping. 420 business leaders are set to write to @hmtreasury next week calling for a change in policy. https://t.co/9C8jex84Xf