Retail welcomes return of tax-free shopping despite bitter rates disappointment

Kwasi Kwarteng

Source: Number 10

Representatives of the sector have welcomed the reinstatement of tax-free shopping for tourists as a boost for UK retail’s competitiveness in a bleak economic climate.

In today’s ‘mini-budget’, new chancellor Kwasi Kwarteng scythed through a raft of scheduled tax increases in a bid to break the “cycle of stagnation” that had gripped the UK. Among the initiatives unveiled was the reintroduction of VAT-free shopping. 

In the mini-budget documents, the Treasury said the new scheme would be a “modernised” form of the model that already exists in Northern Ireland and would “introduce a new digital scheme in Great Britain” following a consultation period. 

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