Burberry, the iconic British luxury brand, is facing criticism after reports emerged that it lobbied the government to abolish VAT-free shopping for international tourists. The move has sparked outrage among industry leaders who argue it could devastate London's retail sector.
Burberry's Controversial Stance
Documents reveal Burberry urged ministers to scrap the tax-free shopping scheme, claiming it primarily benefits wealthy foreign shoppers rather than supporting British businesses. The brand argued that ending the perk would create a "level playing field" for UK consumers.
Industry Backlash
Supermodel Naomi Campbell and retail experts have condemned the proposal, warning it could drive high-spending tourists to European rivals like Paris and Milan. The New West End Company estimates the change could cost London's economy £1.5 billion annually.
Government Response
While the Treasury maintains the scheme was too costly, critics point out that luxury brands like Burberry themselves benefit significantly from tourist spending. The controversy comes as London struggles to regain its pre-pandemic tourism levels.
