Jeremy Hunt is urged by politicians to axe the hated tourist tax

Andrea Leadsom becomes the latest senior politician to urge Jeremy Hunt to axe the hated tourist tax

• Dame Andrea Leadsom became the latest politician to urge the axe of tourist tax
• She said she was sympathetic to businesses calling on the Government
• READ MORE: Keir Starmer is accused of ‘plotting coalitions’ 

Tory former business secretary Dame Andrea Leadsom yesterday became the latest senior politician to urge the Chancellor to look again at the hated tourist tax.

Joining the growing clamour to bring back tax-free shopping for overseas tourists, the former Cabinet minister said ministers should ‘very carefully assess’ the impact of its removal.

Dame Andrea said she was sympathetic to businesses calling on the Government to scrap the tourist tax.

Her South Northamptonshire constituency is ‘just down the road’ from the designer shopping outlet Bicester Village, which has been demanding the return of tax-free shopping.

Dame Andrea told Sky News’ Kay Burley yesterday: ‘It’s a huge, incredible tourist attraction which does a massive amount of business, and they have certainly lobbied me about this issue with VAT.

Bicester Village is among scores of businesses which have signed a letter to Chancellor Jeremy Hunt demanding he scraps the hated tax to boost the economy

Liz Truss sought to reintroduce the VAT rebate during her short tenure in No10, but Mr Hunt reversed the decision last autumn

‘It’s difficult, isn’t it? You do want everybody who comes here to pay their fair taxes, but on the other hand if we are losing out to other centres who are offering VAT-free shopping then we’re sort of scuppering ourselves.

‘I think it’s a difficult decision but I certainly think it’s one the Government should very carefully assess – whether we are actually net losing out by scrapping the VAT refunds and whether we should actually perhaps reinstate them for the sake of attracting more tourist shoppers.’ Asked if the Chancellor should look at it again, Dame Andrea replied: ‘I think so, yes.’

Bicester Village is among scores of businesses which have signed a letter to Chancellor Jeremy Hunt demanding he scraps the hated tax to boost the economy.

The letter, organised by hotelier Sir Rocco Forte, brands the Government’s decision in 2021 to scrap the long-standing scheme that allowed international tourists to shop tax-free as ‘puzzling’ and ‘ill-timed’.

Liz Truss sought to reintroduce the VAT rebate during her short tenure in No10, but Mr Hunt reversed the decision last autumn.

The letter states: ‘Every country remaining in the EU now offers tax-free shopping, while we don’t. Effectively, we have suddenly started charging 20 per cent more than other countries do for the same goods.

‘The Treasury claims this move is saving the taxpayer £2 billion a year, but this is flawed and misleading.

‘The foreign visitors who have traditionally come from the US, Middle East, China and elsewhere to shop for the best of British inject large sums into the broader economy, on top of what they spend on retail purchases.’

Despite the Treasury’s calculations, research suggests there would be a net gain of around £350 million a year because of the knock-on benefits.

Campaigners say the additional tourists who would be attracted to come to Britain would spend across the economy and country – in hotels, restaurants, entertainment and transport – generating separate tax revenues and creating jobs.

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