​Savile Row tailors say duty-free shopping end could be existential issue

By

Nigel TAYLOR

Published
Nov 9, 2020

Struggling tailors trading in and around London’s Savile Row want the government to reverse plans to end VAT-free shopping for tourists in the UK.

The call comes as fears grow that the Covid-19 pandemic poses an “existential threat” to some of London’s historic businesses, according to the Times newspaper.

Savile Row tailors have written to the chancellor warning that the end of VAT-free shopping puts their futures in doubt and comes at a time when the pandemic closes stores and badly hits tourism. Meanwhile, travel restrictions and home working have resulted in a sharp decline in demand for formalwear.

The government’s plan to end VAT refunds for overseas visitors comes into effect at the end of this year and could lead to £3.5 billion in lost revenue for retailers. According to the Centre for Economics and Business Research, about £28.4 billion was spent by overseas tourists last year, with £2.5 billion reclaimed in VAT.

Simon Cundey, managing director of Henry Poole, said: “This VAT move is really coming at the wrong time. It’s not been thought through at all. It will tear off a mass of industry and income from overseas, which will just switch to Paris or Rome.”

Neil Clifford, chairman of high-end shirt-maker Turnbull & Asser, added: “This change will decimate the popular shopping area of St James in central London and will mean that we will significantly downsize our production team next year.”