Mulberry boss calls on govt to scrap tourist tax

Mulberry CEO Andrea Baldo has called on the government to consider scrapping the tourist tax as it looks to increase growth in the economy.

Baldo told The Telegraph that reintroducing tax-free shopping for tourists would “be beneficial for the economy”.

He also believes that it would help luxury manufacturers such as itself to invest further in UK production, boosting the country’s high street stores, restaurants, and hotels through a resurgence of tourism.

His comments come ahead of the budget on the 26 November where chancellor Rachel Reeves is facing pressure to plug a public finance hole of up to £30bn according to potential forecasts from the Office for Budget Responsibility.

Baldo dismissed concerns that granting tourists tax relief could be an unpopular move for the Labour Government, insisting that it was a question of “international competition”.

The CEO estimated that Mulberry had lost nearly £10m of UK sales between the pandemic and today due to the loss of tax-free shopping.

He said: “You are competing with Paris, and you are competing with Rome. The fact that you are giving an unfair advantage to others doesn’t make any sense. Our business is increasing, which means more handbags would be produced in Somerset, and that’s why my production team would actually welcome a change.

“When I look at London before the pandemic compared to today, we’ve probably lost around a fifth of the traffic from international visitors. We have stores in Dublin and in Amsterdam, and they have almost doubled their business from international travellers.”

Last month Selfridges claimed that the loss of tax-free shopping in the UK and weaker consumer confidence had been significant factors in its annual sales decline.