Chancellor Jeremy Hunt under pressure to scrap tourist tax as number of foreign visitors arriving in Britain for holidays plummets

Report by VisitBritain found that spending by Chinese tourists fell by 41 per cent

Jeremy Hunt was under renewed pressure to scrap the tourist tax yesterday as it emerged spending by foreign visitors to Britain plummeted 10 per cent last summer.

A report by VisitBritain found their outlay between July and September 2023 was £10.1billion – 10 per cent lower in real terms than during the same period pre-pandemic.

The study also found that spending by Chinese tourists, typically the biggest users of VAT-free shopping before it was scrapped in 2021, fell by 41 per cent compared with 2019.

Critics called on the Chancellor to restore VAT-free shopping in the Spring Budget (Pictured, Jeremy Hunt)

Critics last night said the study was proof that failure to restore VAT-free shopping was damaging the economy and tourists were deserting Britain for other countries, such as France and Italy, where VAT-free shopping exists.

They called on the Chancellor to restore it in the Spring Budget on March 6. Joss Croft, of tourism body UKinbound, said: ‘Tax-free shopping in the UK was a huge pull for long-haul international travellers, such as those from China, prior to its removal.

‘We need to win back those international visitors who are now opting to shop in Europe instead.’

Hundreds of MPs, peers and leading figures from across the retail, hospitality and tourism sectors have backed the Daily Mail’s campaign to Scrap the Tourist Tax (stock photo)

Tory MP Henry Smith said: ‘Unfortunately, this is yet more tangible evidence that removing VAT rebates for overseas visitors to the UK has not only negatively impacted retail sales but the wider economy, such as hospitality.’

He added: ‘This is a policy we could and should reverse.’

Hundreds of MPs, peers and leading figures from across the retail, hospitality and tourism sectors have backed the Daily Mail’s campaign to Scrap the Tourist Tax.

A Treasury spokesman said: ‘We keep all taxes under review and recognise the value that retailers bring to Britain. That is why we announced a £4.3billion business rates package at Autumn Statement [in November] to support businesses and the high street.’