The chief executive of Mulberry, the UK's iconic luxury handbag brand, has made a public plea to Prime Minister Andy Burnham to restore the VAT-free shopping scheme for tourists in the UK. The scheme, which was discontinued in 2025, allowed international visitors to purchase goods without paying Value Added Tax (VAT).
The boss of Mulberry believes that reinstating this scheme should be a top priority for the new government, as it would have a positive impact on the fashion industry and job creation across the country. In a statement, the executive highlighted that a VAT-free shopping scheme would not only benefit tourists but also support local businesses and the economy.
The opposition, however, has expressed concerns over the proposal, labelling it as a 'tax break for the wealthy.' Labour's Shadow Chancellor, Rachel Reeves, stated that the party would not support any measures that benefit only a select group of individuals. 'We need to focus on policies that benefit everyone, not just the elite,' she added.
The government has yet to respond to the proposal, but industry experts believe that the scheme could have a significant impact on the UK's fashion sector. The sector has faced challenges in recent years, including rising production costs and competition from global brands. A VAT-free shopping scheme could provide a much-needed boost to the industry and create new job opportunities.
As the government weighs the proposal, it remains to be seen whether the scheme will be reintroduced. However, the debate highlights the ongoing discussion about the role of VAT in the UK economy and its potential impact on different industries.