Tax-free shopping loss threatens UK’s status as a global transport hub
- Heathrow Airport warns loss of tax-free shopping is hurting Britain’s global connectivity
- Passenger numbers at Heathrow rose 4.8% last month
- The airport calls for government policies that support UK aviation’s ability to compete globally
- Ditching the tax could cost the Treasury nearly £11bn annually
- Foreign tourists are switching to Milan and Paris for tax-free shopping
Heathrow Airport has raised concerns about the impact of the loss of tax-free shopping on Britain’s global connectivity. The airport, which experienced a 4.8% increase in passenger numbers last month, believes that this measure is curtailing the UK’s ability to compete globally. CEO Thomas Woldbye emphasizes the need for government policies that support UK aviation’s competitiveness. While the Treasury estimates that eliminating the tax would cost £2bn, campaigners argue that it could actually set the Treasury back nearly £11bn annually, as two million international tourists are deterred from visiting. Last year, the Centre for Economics and Business Research found that the absence of tax-free shopping could discourage international tourists from coming to the UK. The airport also highlights other factors, such as unnecessary visas for transiting passengers and the proposed increase in business rates, that require a cross-government approach to policy making. The UK government acknowledges the importance of the aviation industry and its commitment to supporting airports to boost global connectivity and economic growth. Recent data reveals that thousands of foreign tourists have shifted their tax-free shopping preferences to Milan and Paris following the loss of the scheme in the UK. Research shows that in 2019, 162,000 tourists from non-EU countries sought tax refunds in the UK, but now 20% of those visitors are claiming refunds in EU countries that still offer tax-free shopping. Figures from Global Blue indicate that 34,000 travelers increased their spending to over £3,270 last year, compared to £2,495 in 2019. The impact of the loss of tax-free shopping is also affecting retailers, as Selfridges announced job cuts due to reduced luxury spending. The article highlights the concerns raised by Heathrow Airport and the potential consequences of the absence of tax-free shopping on the UK’s global connectivity.
Factuality Level: 3
Factuality Justification: The article presents the perspective of Heathrow Airport and its CEO regarding the impact of the loss of tax-free shopping on Britain’s status as a global transport hub. It includes statements from both the airport and the government, as well as statistics and figures to support the claims made. However, the article lacks a balanced view and does not provide alternative perspectives or potential counterarguments to the presented information.
Noise Level: 3
Noise Justification: The article provides relevant information about the impact of the loss of tax-free shopping on Heathrow Airport and the UK economy. It includes quotes from key stakeholders and presents data to support the claims made. However, it contains some repetitive information and includes unnecessary details about unrelated topics like job cuts at Selfridges and an interview with THG Beauty CEO.
Financial Relevance: Yes
Financial Markets Impacted: The loss of tax-free shopping at Heathrow Airport could impact the retail industry, particularly luxury spending and tourism in the UK.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification:
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