Some of the UK’s largest retail and luxury brands have warned the government that £1bn will be lost from its decision to scrap tax-free shopping for international tourists, according to The Financial Times.
Selfridges, Harrods and the owner of the Bicester Village outlet centre, are among 17 retailers and brands to warn that the decision could costs billions of pounds in spending from overseas tourists.
Retail groups are understood to have held meetings with officials in Downing Street and the Treasury in recent weeks.
Executives at 17 luxury and retail companies provided estimates over capital expenditure totalling £1bn for periods between 18 months and five years.
Plans to axe the retail scheme – which enables non-EU visitors to reclaim VAT paid on their purchases – were put forward by the Treasury in September.
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