Jewellers join calls to scrap the tourist tax as customers head abroad for VAT-free shopping

By Emily Hawkins

Updated: 20:15 EDT, 26 August 2023

Jewellers have joined a growing chorus of business leaders in calling for the unpopular tourist tax to be scrapped.

Theo Fennell, whose hand-crafted jewels sell for thousands of pounds, is the latest to back The Mail on Sunday's campaign to reinstate VAT-free shopping for tourists, as his customers head to Paris instead.

The perk, which was scrapped in 2021, allowed tourists to get a 20 per cent refund on their purchases – encouraging them to visit and spend in the UK. The discount remains in the rest of Europe.

Mr Fennell, whose business is based in Chelsea Barracks in London, is one of dozens of jewellers to back a letter sent to Chancellor Jeremy Hunt, organised by hotelier Sir Rocco Forte. Other signatories include Faberge, known for its ornate jewelled eggs, celebrity jeweller David Morris, charm bracelet seller Pandora and historic cufflink maker Deakin & Francis.

Theo Fennell, whose hand-crafted jewels sell for thousands of pounds, is the latest to back The Mail on Sunday's campaign to reinstate VAT-free shopping for tourists, as his customers head to Paris instead

The perk, which was scrapped in 2021, allowed tourists to get a 20 per cent refund on their purchases – encouraging them to visit and spend in the UK. The discount remains in the rest of Europe

Mr Fennell said: 'We want to be competitive with our home-grown craftsmanship and beautifully made work and allow the world to see what we can do. It is madness to hobble ourselves in this way.

'There is no doubt that the best-heeled shopping tourists are not doing their spending here as they used to. Paris is, without doubt, the favoured centre.'

Mr Fennell is the father of fashion designer Coco Fennell, whose dresses have been worn by Rihanna and Kylie Minogue, as well as Emerald Fennell, who produced the film Promising Young Woman and portrayed Camilla Parker Bowles in Netflix series The Crown.

Mr Fennell said: 'Our best customers are spending less and less time in the UK and this cannot be a good thing.'

The campaign has also been backed by The Diamond Lab, which sells jewels in department store Selfridges.

Its managing director, Jamie Amelia Patel, said: 'I've witnessed the erosion of the UK's global appeal due to the absence of tax-free shopping.

'The impact transcends retail, affecting communities, cultural heritage and business vitality.'

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