Reintroducing tax-free shopping 'could boost economy by £11.5 billion'

A new report published by the Centre for Economics and Business Research (CEBR) has suggested that reintroducing tax-free shopping for visitors to the UK would help generate £11.5 billion for the UK economy.

4 Sep 2026

A new report published by the Centre for Economics and Business Research (CEBR) has suggested that reintroducing tax-free shopping for visitors to the UK would help generate £11.5 billion for the UK economy.

Reinstating the VAT refund scheme for tourists could potentially attract up to 2.35 million more visitors to the UK every year.

The move could also deliver a £2.6 billion net gain for the Treasury, the CEBR found.

The Conservative government scrapped tax-free shopping in 2021. Estimates from the Office for National Statistics (ONS) showed that, had tax-free shopping been in place in 2025, it would've provided a £11.5 billion boost to the UK economy.

Leaders of some of the UK's biggest companies have urged Chancellor John Healey to reinstate tax-free shopping at the Autumn Budget on 28 October.

A spokesperson for the Treasury commented: 'As has always been the case, the Chancellor will set out decisions at fiscal events, rather than routinely commenting on rumour, speculation or proposals.'