Rishi Sunak love-bombs business chiefs to help Tories upgrade British economy at No10 summit

Rishi Sunak was blasted for scrapping VAT-free shopping for foreign tourists today, with the boss of one of Britain’s top fashion labels saying he had made the UK ‘the least attractive shopping destination in Europe’.

The Prime Minister was trying to woo commercial leaders at a Business Connect summit in London when he was cornered over a decision he made while chancellor.

He removed a tax-break for holidaymakers that allowed them to claim back VAT on items brought in the UK and then taken home. 

Gerry Murphy, the chairman of luxury retailer Burberry, branded the tax a ‘spectacular own goal’. 

Today the Daily Mail, MailOnline’s sister newspaper, launches a ‘Scrap The Tourist Tax’ campaign in support of firms demanding the Government thinks again. 

Mr Murphy told the PM: ‘It is somewhat perverse that on the day that we left the single market, a decision by, I think it was by you as chancellor, to remove the VAT refund for tourists made the UK the least attractive shopping destination in Europe.’

Mr Murphy said leaving the EU ‘has had a significant friction effect on trade’ and that the UK was seeing ‘by far the weakest recovery’ after the pandemic among major economies.

Mr Sunak insisted there ‘were good reasons for it’ but said he would look at the data to ‘see if things are panning out as we expected to, or not’.

He hosted the event with UK PLC remaining in the doldrums, with persistently high inflation and fewer job opportunities. 

Gerry Murphy, the chairman of luxury retailer Burberry, branded the tax a ‘spectacular own goal’.

The Prime Minister replied that he was ‘here to listen’ and ‘we’ll take that away’. He hosted the event with UK PLC remaining in the doldrums, with persistently high inflation and fewer job opportunities.

A coalition of business leaders today calls for the return of tax-free shopping for overseas tourists.

In a letter to the Chancellor, scores of retail, hospitality and tourism bosses said reinstating it would be a win both for business and the taxpayer with research suggesting it could bring a multi-billion-pound boost to the economy.

Sir Rocco Forte, British Airways and Fortnum & Mason all argue that the cost of 20 per cent VAT refunds is outweighed by the enormous benefits of encouraging more visitors to Britain.

The Business Connect event on Monday gathered industry leaders and investors together with Government ministers for ‘direct and detailed discussions’, according to No10.

The so-called growth sectors expected to be represented at the conference include technology, life sciences and advanced manufacturing.

This morning, Mr Sunak spoke to business leaders in an online session on LinkedIn, taking questions from supportive figures including entrepreneur James Caan.

It comes as the Tories slump behind Labour in donations, with business figures switching allegiances ahead of a possible opposition win at the next election, expected in autumn 2024.  

This morning, Mr Sunak spoke to business leaders in an online session on LinkedIn, taking questions from supportive figures including entrepreneur James Caan.

The Prime Minister will host 200 captains of industry at a Downing Street as UK PLC remains in the doldrums, with persistently high inflation and fewer job opportunities. 

It comes as the Tories slump behind Labour in donations, with business figures switching allegiances ahead of a possible opposition win at the next election, expected in autumn 2024. 

As part of building on his plans to create a more innovative economy, No 10 said the Prime Minister would be unveiling a new Innovation category at the Great British Entrepreneur Awards on Monday evening.

The newly minted prize at the awards, which are being hosted by Chancellor Jeremy Hunt, will recognise bright, innovative ideas that deliver new products and services which can drive the UK economy, Downing Street said.

Earlier this year, Mr Sunak created the Department for Science, Innovation and Technology during a shake-up of Whitehall.

Mr Hunt said: ‘It’s absolutely vital that we’re listening to – and working with – industry leaders, innovators and disruptors as we deliver on our priority to grow the economy.’

The leaders of alcohol wholesaler Diageo, Barclays bank and retailer Currys welcomed the Business Connect initiative.

No 10 said the conference comes following the creation of 11,000 jobs as a result of inward investment since October.

But Labour accused the Tories of economic mismanagement, arguing that a lack of a UK Government industrial strategy meant there had been a failure to support businesses through soaring inflation.

It pointed to the International Monetary Fund’s (IMF) April forecasts suggesting that the UK would see average inflation of 7 per cent in 2023 and 3 per cent in 2024, meaning continued rising prices for consumers.

According to party analysis, the forecast 10 per cent rise over two years in Britain would be higher than the IMF’s Group of Seven (G7) average of 7 per cent.

Party officials say inflation will end up costing households nearly £1,500 per year given the Office for National Statistics (ONS) recorded the weekly average household spend as being £482 in 2020.

Shadow chief secretary to the Treasury Pat McFadden said: ‘After 13 years, the pattern of Tory economic failure is grinding on.

‘Families in Britain are being harder hit by price rises than many comparable economies.

‘Other countries have had to cope with Covid and the consequences of the war in Ukraine, yet it is Tory Britain which sits at the top of the inflation growth league of major industrial economies.’

Earlier this month, IMF economists stated that they expected the UK economy to grow slower than other developed G7 nations, with a contraction of 0.3 per cent this year before rebounding to grow by 1 per cent next year.