Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact on high street retail businesses of the Chancellor of the Exchequer's decision to withdraw the VAT-free shopping scheme for non-resident visitors announced on 23 September.

On 23 September, as part of the Growth Plan 2022, the previous Chancellor announced that HM Treasury, in partnership with HMRC, would introduce a modern, digital, VAT-free shopping scheme, with the aim of providing a boost to the high street and creating jobs in the retail and tourism sectors. Due to the changing economic picture, on 17 October, the current Chancellor announced that the Government would no longer be proceeding with the introduction of such a scheme. This decision was included as part of the reversal of almost all of the tax measures set out in the Growth Plan on 23 September which have not been legislated for in Parliament. The purpose is to ensure the UK’s economic stability and to provide confidence in the Government’s commitment to fiscal discipline. The Chancellor made clear in his statement that the UK’s public finances must be on a sustainable path into the medium term.