Fresh AIR

Dear <<First Name>>,

Welcome to our monthly update of AIR’s activities and plans.
 
With international travel expected to return towards the end of this year, AIR is planning now to ensure the strongest possible recovery. 
 
The world post-COVID-19, post-Brexit and post-tax-free shopping may well be very different.  You will see below how we are exploring the key issues in our forthcoming Board Workshop.  But we want to hear what issues you think will be most important to promote business recovery and growth.  Please take a few minutes to fill out our survey here.

Best wishes,


Jace Tyrrell
Chairman

Tax Free Shopping

The High Court has ruled that the Government did follow due procedure when making the decision to end the VAT RES (tax-free shopping) in a Judicial Review brought by Heathrow, Global Blue and World Duty Free.

The Court’s judgement relates solely to the decision-making process – the court cannot examine or comment on the merits of the decision or the evidence upon which it was based.

This outcome was expected because the bar for challenging Government decision-making process is set high.  But the case has put into the public domain much of the material and evidence used by the Government in reaching its decision, some of which is helpful to the case for re-instating the scheme. 

As one example, the Government revealed in court a survey commissioned by HMRC of consumers from China and the Middle East.  The findings in the survey undermine the Treasury’s central claim that tax free shopping did not affect the behaviour of international visitors when deciding whether to visit the UK or how much they spend.

You can see AIR’s response to the judgement and some examples taken from the HMRC survey here.

Industry leaders have committed to continue a long-term campaign to re-instate the VAT RES.  A key element of this will be the collection of data on international visitor spending in the UK compared with France and Italy, once international travel resumes, to demonstrate the real impact of this decision on the UK economy.

Board Workshop

In preparation for the return of international travellers, AIR is holding a Board Workshop on June 15^th to agree the policy priorities for ensuring the strongest possible recovery.

The Retail Minister and the European Director of the World Travel and Tourism Council will open the event.  Members will then discuss topics including tax free shopping, simplifying the visitor visa application system, extending Sunday trading hours in International Centres, marketing to attract international shoppers and the environmental impact of international retail.  The sessions will be led by Global Blue, New West End Company, Walpole and Marketing Manchester.

We will post a recording of the session on the AIR website and produce a full report in our next newsletter.

AIR in the News

Dixons Carphone shuts airport stores following axing of duty free shopping
Evening Standard, 28/04/21

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