Retailers in London and other British tourist hotspots have been left disappointed after UK Chancellor Jeremy Hunt's “hammer blow” decision to reverse the planned reinstatement of tax-free shopping for foreign visitors that his predecessor Kwasi Kwarteng had announced last month.
Tourists' ability reclaim VAT in the UK was abolished on New Year’s Eve in 2020, with the costs of maintaining the rebate after Brexit considered to be disproportionate.
Mr Kwarteng had announced the move in his tax-slashing mini-budget statement in September, which crashed the pound and forced the Bank of England into an emergency gilt-buying spree to the tune of £60 billion ($67bn) in an attempt to calm febrile markets.
It would have meant foreign visitors to the UK could have obtained a 20 per cent refund on goods bought in Britain and exported in their personal baggage.
At the time of the announcement, it was heartily welcomed by luxury fashion and jewellery retailers, whose products are perennially popular with wealthy tourists.
Paul Barnes, chief executive of the Association of International Retail, was one of the loudest cheerleaders for Mr Kwarteng's proposal and called the decision in 2020 to scrap the exemption “devastating” for the industry.
In an “ideal world” tax-free shopping would be back in time for King Charles's coronation on May 6, he said in the aftermath of the mini-budget.
Mr Barnes has now been left seething at Mr Hunt's reversal.
“This short-sighted move is based on inaccurate and incomplete projections,” said Paul Barnes, head of the Association of International Retail, calling the about-turn a “hammer blow to UK tourism and the British high street.”
More dissenting voices from the sector swiftly materialised on Monday.
Helen Brocklebank, chief executive at Walpole, which represents the UK luxury industry, said Walpole expected the plan to deliver at least £1.2 billion ($1.3 billion) in direct retail sales.
“We are disappointed that the government has decided not to proceed with its policy to return tax-free shopping, a policy which will quickly deliver growth,” she said.
“It would have been a significant boost to UK manufacturing, which forms part of the wider ecosystem of the sector and supports jobs across the country.
The British Retail Consortium was also against Mr Hunt’s decision to stick with VAT.
“We are disappointed by the decision on tax-free shopping for tourists, which would have helped strengthen the UK’s position as a top destination for international shoppers,” said Tom Ironside, the BRC’s director of business and regulation.
“This decision leaves the UK as one of the only European countries not to provide a tax-free shopping scheme to encourage tourism.”
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
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Other ways to buy used products in the UAE
UAE insurance firm Al Wathba National Insurance Company (AWNIC) last year launched an e-commerce website with a facility enabling users to buy car wrecks.
Bidders and potential buyers register on the online salvage car auction portal to view vehicles, review condition reports, or arrange physical surveys, and then start bidding for motors they plan to restore or harvest for parts.
Physical salvage car auctions are a common method for insurers around the world to move on heavily damaged vehicles, but AWNIC is one of the few UAE insurers to offer such services online.
For cars and less sizeable items such as bicycles and furniture, Dubizzle is arguably the best-known marketplace for pre-loved.
Founded in 2005, in recent years it has been joined by a plethora of Facebook community pages for shifting used goods, including Abu Dhabi Marketplace, Flea Market UAE and Arabian Ranches Souq Market while sites such as The Luxury Closet and Riot deal largely in second-hand fashion.
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Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:
- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools
- average salary across curriculums and skill levels is about Dh10,000, recruiters say
- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance
- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs
- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills
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- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues
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