Loss of VAT-free shopping is narrow minded, say bosses

Retail bosses have warned the government that its decision not to restore VAT-free shopping for foreign tourists is having a knock-on effect on other industries.

The boss of the outlet shopping centre at the O2, an entertainment venue in southeast London, has accused the Treasury of not considering the effect that scrapping the scheme has had on hotels, pubs and restaurants in the UK.

Janine Constantin-Russell, the managing director, said: “The government isn’t listening at all. It’s looking at the outgoings instead of looking at how much a tourist would spend across the wider hospitality sector. Every destination and attraction is affected, not just the luxury brands.

“We’re being asked to do business with one hand behind our backs. We’re having to fight even harder