UK Considers Scrapping Controversial Tourist Tax After Backlash

Jeremy Hunt has opened the door to potentially scrapping the controversial tourist tax that removed VAT-free shopping for visitors to the UK. This has faced backlash from retailers.

The Office for Budget Responsibility (OBR) has committed to reviewing the tourist tax and its impacts, with findings to be published alongside the Spring Budget.

Over 400 business leaders wrote to Hunt calling for the tourist tax to be revoked, arguing it has cost retailers billions and driven shoppers to other European cities.

An OBR chair letter suggests an original £2bn cost estimate for reinstating the VAT exemption was not vetted by them.

Supporters argue removing the tax could benefit shops and hospitality from increased wealthy tourist spending, but the Treasury has questioned if it'll be a priority for the Chancellor.