West End loses out on £310m in sales without tax-free shopping
Nearly all respondents (96%) said international spending is being diverted to rival shopping destinations such as Paris and Milan
Register to get 1 more free article
Reveal the article below by registering for our email newsletter.
Want unlimited access? View Plans
Already have an account? Sign in
Retailers in London’s West End have lost an estimated £310m in sales in the first half of 2025 due to the ongoing absence of tax-free shopping, according to new research released by New West End Company.
The figure represents a 40% increase on the £220m lost over the same period in 2024, and brings total unrealised sales since the start of 2023 to nearly £1.4bn.
New West End Company, which represents retailers, hoteliers and property owners in the area, said the latest six-month total was the “largest loss” since the scheme was withdrawn.
A recent survey of West End businesses found that 83% believed the absence of tax-free shopping is directly harming their trading performance.
Nearly all respondents (96%) said international spending is being diverted to rival shopping destinations such as Paris and Milan.
The data also suggested a wider impact on international footfall, with 81% of businesses reporting fewer overseas visitors.
A further 92% said that they are seeing reduced spending by international customers.
Three-quarters of respondents said they are reviewing staffing levels due to the pressures, while half are reconsidering investment in the UK.
This comes despite a rebound in international travel. The World Travel and Tourism Council has forecast global visitor spending will reach $2.1tn (£1.56tn) in 2025, exceeding 2019 levels by $164bn (£121.6bn).
New West End Company chief executive Dee Corsi said: “The data is clear: losing tax-free shopping is costing UK businesses, with the value of unrealised sales growing year by year. And with the high cost of doing business in the UK compounding the pressure, many businesses are being forced to review their staffing or investment decisions.
“But it doesn’t have to be that way. Tax-free shopping presents a rare, low-cost opportunity for the government to back Britain’s near-term growth, create jobs, and give our businesses their competitive edge once more. Not only is the scheme understood by global consumers, it is backed by business. The time to act is now, before the window of opportunity closes.”
