West End lost over £300m in six months due to scrapping of tax-free shopping

This marks the biggest half-year loss since the policy was removed, and takes the total loss to almost £1.4bn since 2023, according to research by the New West End Company. 

The latest figure is up 40% from the £220m loss in the first half of 2024 due to the scrapping of tax-free shopping.

A recent survey of West End businesses reveals further impact the policy has had, as 83% said the lack of tax-free shopping is directly damaging trading performance.

Almost 96% believe international spend is now being moved to cities such as Paris and Milan as 81% reported seeing less international visitors. 

Added operational costs and changing consumer patterns also mean 75% said they are reviewing staffing levels and 50% rethinking investment in the UK.

New West End Company chief executive Dee Corsi said: “The data is clear: losing tax-free shopping is costing UK businesses, with the value of unrealised sales growing year-by-year. And with the high cost of doing business in the UK compounding the pressure, many businesses are being forced to review their staffing or investment decisions.

“But it doesn’t have to be that way. Tax-free shopping presents a rare, low-cost opportunity for the Government to back Britain’s near-term growth, create jobs, and give our businesses their competitive edge once more. Not only is the scheme understood by global consumers, it is backed by business. The time to act is now, before the window of opportunity closes.”