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Burberry chief executive urges Reeves to scrap VAT for tourists
The Guardian
|November 14, 2025
Bosses at Burberry have urged Rachel Reeves to reinstate a tax-free shopping scheme for tourists in the budget to "unlock further growth" and increase tourist spending.
Executives at the British luxury brand called on the chancellor to pursue “progressive policies” to boost shopping sprees from tourists, pointing specifically to a VAT refund programme for foreigners that was scrapped five years ago.
Tax-free shopping was abolished at the end of 2020. It made a brief return under Liz Truss’s short-lived government in 2022 but was scrapped again weeks later by Rishi Sunak.
Burberry said the UK had been losing out ever since, with shoppers from the US, Middle East and Asia choosing Paris and Milan instead.
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