Knightsbridge Partnership, in collaboration with Cadogan, Heathrow and New West End Company, is leading a national campaign to restore tax-free shopping in the UK.
It has now been five years since the UK lost parity with other international shopping destinations. While visitor numbers have largely recovered, spending has not kept pace. Non-EU visitor spend remains at just 75% of 2019 levels, compared with 166% in Spain, 159% in France and 137% in Italy.
The new Government is seeking credible, evidence-based policies that deliver visible growth and job creation. This presents a vital opportunity to develop a forward-looking proposal that restores the UK’s competitiveness in the global visitor market.
Rather than calling for the reinstatement of the previous tax-free system, the campaign is focused on developing a modern, fair and digital alternative that strengthens the UK’s position in international shopping and tourism. This approach supports growth across the visitor economy and helps London and regional destinations remain world-leading.
Working with partners across retail, hospitality, culture, transport and manufacturing, the campaign is exploring all credible options, from reforming existing mechanisms to introducing new models. The shared goal is to move the debate from “bring it back” to “build it better”.
The proposal under development will be guided by six principles: credibility, simplicity, fairness, growth, integration and deliverability. In practice, this means a digital and accessible model that is fiscally sound, easy to use and designed to deliver growth and investment across the UK.
Over the coming months, we will commission independent economic modelling to test alternative options. A credible, modern solution – built in partnership with Government and industry – could unlock billions in visitor spend and new tax revenue, sustain jobs across retail, hospitality, culture, transport and manufacturing and strengthen “Brand Britain” internationally.
FIND OUT MORE
Earlier this week, we hosted a VAT Free Shopping Campaign Update webinar. Missed it?View the webinar recording and presentation slides in our Members Area here.
If you have any further questions about the campaign, or want to organise a one-on-one briefing, please email Katie Blake, Marketing and Communications Director at katie@knightsbridgepartnership.com
