Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to his Department’s Tourism Recovery Plan Update on Delivery, published in March 2023, what assessment he has made of the impact of the removal of VAT-free shopping for overseas visitors on the tourism sector.

The Government’s costings for the removal of the VAT Retail Export Scheme, which included consideration of spending behaviour of overseas visitors, have been certified by the OBR. The Government continues to monitor the evidence and latest data around VAT-free shopping as we keep all taxes under review.

The Government updated Tourism Recovery Plan includes the target to recover to 2019 levels of inbound visitors and spend by the end of 2024, a year sooner than independent forecasts predict.

VAT-free shopping is still available for all non-UK visitors who purchase items in store and have them delivered to their overseas address.