The Conservative Party has announced plans to reintroduce tax-free shopping for non-EU tourists, citing competitiveness with European destinations. Party leader Kemi Badenoch emphasized that the previous abolition in 2021 has negatively impacted UK businesses, which are losing customers to rival countries offering similar incentives.
The proposal includes potential VAT refunds for EU visitors if the scheme proves financially viable. The Conservatives aim to fund this initiative by addressing NHS health tourism and implementing savings from previous budgets, while businesses advocate for the economic benefits of attracting more tourists.