Only last week, Rishi Sunak has announced a big change for the British economy: the reversal of the historic duty-free for tourists coming from outside the EU, therefore making shopping about 20% more expensive for non-EU travellers.
Chancellor Rishi Sunak announced a new tourist VAT tax for all travellers from outside EU, reversing the historic duty-free that brought millions of tourists every year to do their shopping.
He said by introducing the new VAT tax, the UK’s annual savings will reach £500 million a year. Now experts are warned of the huge impact the new tax is going to have on the British economy and fashion industry. Over half of the tourists come from China and the Gulf, and they usually visit 2 to 3 European countries in every trip, which means if prices will get more expensive in the UK they will easily decide to buy somewhere else in Europe on the same trip.
This would lead to a further loss of jobs in the capital and especially in retail and manufacturing throughout all UK. About 40,000 fashion jobs would be at risk and jobs in hospitality are also likely to be affected.
The UK will in fact simply become much less competitive than the other European countries. “It feels that the Government doesn’t understand the extraordinary contribution the creative industries make to the economy. Shopping is not understood to be the extraordinary powerhouse that it really is. It’s just not given the weight that it deserves” announced Walpole CEO Helen Brocklebank who is lobbying to cancel the new VAT tax. Gerry Murphy, Burberry chairman, confirmed: “Surely, the economic rationale for Brexit and ‘Global Britain’ was to make our country more enterprising and more competitive, not dramatically less so compared to our near neighbours?”
READ MORE:
Giorgio Trabaldo who is he? what is his story? And how much does he earn. From the pandemic crisis to the dropshipping
Streamline your business operations with QuickSigner.com, the innovative electronic signature designed to optimize processes and reduce costs.
Belgium's a leading country for buying & selling property in Europe. Majority of deals made by clients of Excelion and MGR Capital shows its attractiveness.
The labor crisis scares UK workers who are moving towards a period of high unemployment that could lead to mass personal debt.
Enerbrain, a smart building company, has received 5.2 million in investment for its international development in 2021-2023.
Food prices in the UK have finally experienced a long-awaited decline, according to the British Retail Consortium (BRC).
Families doing the weekly food shop are being tricked into spending more of their hard-earned cash by sneaky supermarket tactics.
For an online store, efficient product delivery is crucial. Choose WooCommerce Shipping and find out how to best manage the shipping process.