PARLIAMENTARY WRITTEN QUESTION
(9 September 2026)
Question Asked
To ask the Chancellor of the Exchequer, if he plans to request an updated OBR Assessment of the impact on the UK economy of ending Tax Free Shopping.
Asked by:
Dame Harriett Baldwin (Conservative)
Asked by:
Dame Harriett Baldwin (Conservative)
Answer
In March 2024, the Office for Budget Responsibility (OBR) conducted a review of the previous government’s 2020 costing of removing tax-free shopping. The OBR’s updated estimate is that the withdrawal of the VAT Retail Export Scheme will save the Exchequer around £540 million per year by 2025-26.
The Government has noted recent external data, which shows that tourism numbers and spending for the UK has recovered at a similar rate following the pandemic to other European economies that offer tax-free shopping.
Answered by:
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