Calling All Santa’s Helpers: Small Businesses Urge Government to Axe Tourist Tax and Save Christmas Shopping Frenzy!
Leah Montebello, Business Reporter
Updated: 19:51 EDT, 27 August 2023
The tinsel is almost ready to drape, the mistletoe is itching to be hung, and the Christmas shopping rush is peeking around the corner. But there’s a glitch in the holiday cheer – small businesses are waving their jingle bells in alarm. They’re asking the government to do a major rewind on the tourist tax situation, and they’ve got a point. If not, the UK might just miss out on the merry mayhem.
The Plea for a Taxing Miracle
Picture this: the Federation of Small Businesses (FSB) is like a group of holiday heroes who’ve unrolled their ‘tinsel list’ of wishes. Topping that list? Bring back the good ol’ tax-free shopping magic for visitors from around the globe. They’re looking at you, Mr. Treasury.
Countdown to Christmas: 119 Days
You read that right. Christmas is still a fair bit away, but our fine FSB friends, who are like the Avengers of businesses with 150,000 members, aren’t wasting any time. They’re saying that getting rid of the tourist tax would be like giving them a shiny present. And this gift could save their holiday season.
The Mail’s Crusade
The Mail newspaper is on a mission. They’re leading a charge to reintroduce the good old days when tourists could shop till they dropped without the added tax weight. This golden time vanished in 2021 when the UK waved goodbye to the EU.
Big Names, Big Hopes
Imagine some big shots like Marks & Spencer and Burberry joining forces with over 350 businesses. They’ve penned a letter to the Chancellor, saying, “Hey, let’s scrap this tourist tax thing, shall we?” It’s not just the bigwigs; smaller champs like Ettinger, Pickett London, The Cambridge Satchel Co, and even the fancy Savile Row tailors, Norton & Sons and Gieves & Hawkes, are giving it a thumbs-up too.
Cue the Economic Superpowers
Oxford Economics, the financial brainiacs, have crunched the numbers. They say that giving tourists a tax break would not just fill our holiday shopping bags but also our wallets. Like, billions more into the economy and supporting around 78,000 jobs. That’s a lot of mince pies!
Tina McKenzie’s Wisdom
Tina McKenzie, the policy wizard at FSB, said, “In a sleepy economy, we’re hungry for growth.” Basically, she’s saying let’s light up the cash registers. Tax-free shopping could draw those big-spending global visitors back into our shops and sprinkle a little extra on restaurants, bars, and tourism spots – the places that need a boost after the COVID kerfuffle.
Paris vs. London: The Battle of the Shopping Capitals
Here’s the scoop: tourists are sniffing out better deals in Paris because of this tax thing. They used to get a sweet 20% discount on their shopping bills. But not anymore. The rest of Europe still has it. And guess what? Shoppers from the UAE and Saudi Arabia are splurging more in Europe. We’re like that host who’s throwing a party but forgot to order the cake.
Cold Hard Facts: The Lost Treasure
There’s proof in the pudding – a study from the Centre for Economics and Business Research says we could be swimming in £10 billion extra every year if we bring back the VAT refunds. And guess what the government says? It might cost £2 billion. It’s like a math puzzle no one can solve.
Christmas Wishlist Continues
The FSB’s ‘tinsel list’ isn’t just about the shopping jamboree. They’re also asking for help with energy costs and smoother ways for folks to reach the high streets. This way, more visitors can pour in, making the UK a dazzling tourism and shopping hotspot.
So, as we sip our cocoa and start thinking about our Christmas lists, let’s hope the government listens to these small businesses. After all, they just want to make sure Santa’s sleigh is packed with plenty of presents for everyone. 🎄