New report: tax-free shopping will boost jobs and growth while generating an extra £350m for the Treasury

Last week the researchers at the economic consultancy Oxford Economics produced a groundbreaking new study of the costs and benefits of tax-free shopping. This new report, commissioned by our partners at the Association of International Retail (AIR), undermines the Treasury's assessment of the costs of the scheme and shows once and for all that the scheme would be a money-spinner for the Government and business alike.

The report's key findings are as follows:

• Rather than a £2bn annual cost, the impact will be a £350m annual net gain to the Exchequer.
• This is because for this new analysis takes into account the additional VAT-able spending made by visitors, makes a more accurate, lower assessment of the level of VAT refunds and includes the additional tax revenue generated through additional economic activity.
• The additional international visitor spending generated by tax-free shopping would support £4.2bn of GDP annually, sustaining 78,000 jobs. This is a compelling economic return (a 7:1 return on investment).

This report vindicates our long-held position that removing the scheme was a misjudgment which has damaged our sector, harmed the wider economy and hampered jobs & growth. You can read the full report here.

Many of our members have been very supportive of our work to secure the return of tax-free shopping, and I hope that once again you will be willing to help us. As such, we would appreciate it if you could contact your local MP and ask them to raise this report with the Chancellor. Our partners at AIR have some helpful guidance here.

If you have any questions or would like to speak to a member of the Walpole public policy team, please email [email protected]