Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will (a) reinstate VAT-free shopping for visitors and (b) allow VAT refunds on departure.

The Government has no plans to introduce a new tax-free shopping scheme in Great Britain.

According to the OBR, the withdrawal of the VAT Retail Export Scheme will save the Exchequer around £540 million per year by 2025-26.

Recent ONS data shows that UK tourism numbers and spending has recovered at a similar rate following the pandemic to other European economies.

The Government has considered analysis supporting the introduction of a new tax-free shopping scheme and found that there is insufficient evidence that a new scheme would have greater benefits to the UK than costs.