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2. Heathrow Airport Duty Free Shop
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Heathrow Airport today demanded an end to the Rishi Sunak’s “disastrous' tourist tax on long haul travellers as it reported on an 88% crash in passenger numbers last month.

Britain's biggest airport has launched a legal challenge against the decision to end duty-free bargains on perfume, clothing and electronics. Heathrow argued the move will cost the country. Heathrow Rewards World Duty Free Staff for Innovative Thinking World Duty Free has been awarded first place in Heathrow’s Eureka! 2010 retail innovation incentive scheme. Launched this year the award recognises innovative thinking from the airports' business partners which positively impacts the passengers' experience at Heathrow.

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The airport called for targeted support of the airport sector to protect jobs and help drive the economic recovery.

It said: “These include full business rates relief for all UK airports and abandoning the disastrous tourist tax which will make the UK the only country in Europe not to offer tax-free shopping for international visitors.”

He warned the tourist tax would result in 2000 job losses at Heathrow shops alone.

The Evening Standard has been campaigning for the government to repeal its surprise decision to scrap decades of duty free allowances on tourists from outside the EU in the hope of raising £500 million of extra VAT income.

The net effect of the move, after accounting for the expected cancellation of visits and shopping trips by long haul travellers is expected to be a tax shortfall of £3.4 billion, according to analysts Global Blue.

Total spending in UK shops, hotels and restaurants is expected to fall £6 billion from the move.

Heathrow chief executive John Holland-Kaye said: “2021 should be the year of Britain’s economic recovery. But recent announcements, such as the tourist tax, could be the final nail in the coffin for struggling businesses such as restaurants, hotels and theatres that rely on inbound tourists as well as for retailers.”

He added: “To make ”global Britain' a reality, the government should be helping the aviation sector to survive, to develop routes to our key trading partners, and attract businesses and tourists to come to Britain to spend their money.'

The government argues that the tax, which comes in the form of an abolition of VAT refunds on UK shopping, predominantly helps London and Oxford.

However, MPs and business leaders across the UK in areas from Manchester and York to Scotland have loudly complained it will hit their tourist-dependent businesses as well, from manufacturing to retail.

Total job losses are estimated to be upwards of 40,000 as employers suffer declines in tourist numbers and spending.

Heathrow Airport Duty Free Shop

Industry is calling on the government to repeal the move, which it has put into parliament as a statutory instrument with barely any parliamentary scrutiny.

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Businesses argue the consultation period was deeply flawed, with the drastic proposal meriting only a fleeting mention in a far wider discussion document issued to industry at the height of the Covid pandemic in Spring.