Tories vow to restore tax-free shopping for tourists

The party has criticized the decision to scrap the UK’s VAT refund scheme for overseas visitors in 2021, arguing that the move has weakened the country’s competitiveness relative to European destinations. The scheme, which allowed non‑resident shoppers to reclaim value‑added tax on purchases, had been a key incentive for international tourists and was widely used across the UK’s retail sector.

Supporters of the scheme say its removal coincided with the UK’s exit from the EU and was intended to cut administrative costs, but the party points to data showing a decline in tourist spending and a drop in the UK’s tourism competitiveness index compared with neighboring countries. The loss of the VAT refund option has reportedly made UK shopping less attractive to visitors who can still reclaim tax in many European cities.

The party calls for the reinstatement of the VAT refund scheme or the introduction of an alternative mechanism to restore the UK’s appeal to international shoppers. It warns that further cuts to tourism incentives could erode the sector’s contribution to the economy and diminish the country’s position as a leading travel destination.