Fears over duty-free jobs disaster when Britain ends VAT refunds for foreign visitors to UK shops

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Fears over duty-free jobs disaster when Britain ends VAT refunds for foreign visitors to UK shops next month

  • Chancellor Rishi Sunak will end VAT refunds for foreign visitors to UK shops
  • Businesses and MPs have warned that 40,000 jobs will be lost due to the move
  • High street chains fight to recover after a year that will see 20,000 shops close

By Daily Mail Reporter

Published: | Updated:

MPs have demanded the Government reveals how hard the UK economy will be hit when duty-free shopping for foreign tourists is scrapped next month.

Chancellor Rishi Sunak will end VAT refunds for international visitors to British shops from January 1 as part of Brexit.

Businesses and MPs have warned that 40,000 jobs will be lost as wealthy tourists divert their spending to nearby nations such as France and Italy. 

Chancellor Rishi Sunak will end VAT refunds for international visitors to British shops from January 1 as part of Brexit, which could see 40,000 jobs lost warn businesses and MPs. Pictured: The world duty free shop in London Heathrow Airport

The row comes as high street chains fight to recover after a torrid year that will see 20,000 shops close and 235,000 retail jobs lost.

The Treasury said its reforms will save £400million by 2024 and this week published an assessment of removing the tax break. 

However, it did not report on the hit to hotels, restaurants and theatres.

Tory MP Mel Stride, chairman of the Treasury select committee, said: ‘These sectors will be worried that up to 30,000 tourists, many of whom are high spending, could be dissuaded from visiting the UK.’