Burberry chairman Jerry Murphy has said the UK is at a disadvantage by abolishing value-added tax refunds to tourists, while European countries maintain preferential treatment.
Monday 24 April 2023 14:06, United Kingdom
Prime Minister Rishi Sunak has been challenged by Burberry’s chairman to end VAT refunds for tourists.
Luxury retailer head Jerry Murphy said a “spectacular own goal” had made Britain the “least attractive” shopping destination in Europe.
The conversation took place at the Business Connect conference, where nearly 200 high-profile CEOs were given the opportunity to ask the Prime Minister questions.
Mr. Murphy first said Mr. Snak was “clearly more business-friendly than the previous administration.”
He then said: ‘I believe the decision to abolish VAT refunds to tourists on the day we left the single market was by you as prime minister, but I think you should make the UK the most attractive country in Europe. It’s a bit perverse for a non-shopping destination.
“Brexit has had a significant frictional effect on trade, which we hope will last forever, but it has been a drag on growth.
“So I would like you to look at this particular thing (VAT). It is a magnificent own goal that can be overturned by your or the Prime Minister’s decision.”
Murphy said the decision affected not only the luxury goods industry, but also travel, hotels, airlines and airports, adding: “As a result of that policy, we are aggressively exporting our business to our continental competitors. I will,” he added.
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Snack came to the London event hoping to mend ties with the business community after Brexit, coronavirus and the challenges and problems of the leadership of Boris Johnson and Liz Truss.
“I want businesses big and small to know that this government is supporting you,” he said at the beginning of the meeting.
In response to Murphy, he declined to discuss the tax system on public forums, but said there were “good reasons” for the value-added tax change.
He promised to look at the data and “see if things are going as expected,” adding, “We take this very seriously and we’re here to listen and get involved.” I will,” he added.
Labor’s shadow treasury secretary, Pat McFadden, said: “Thirteen years later, the pattern of Tory economic failure continues.
“British families have been hit harder by rising prices than in many other comparable economies.
“Other countries have had to deal with the consequences of the coronavirus and the war in Ukraine, but it is the Tory UK that has the highest inflation rate among major industrial economies.”
