Burberry boss says Brexit VAT changes put UK at ‘competitive disadvantage’
The boss of Burberry has complained that the UK is at a “competitive disadvantage for global shoppers” which has held back sales in its home market after the government ditched a VAT tax break for tourists.
Jonathan Akeroyd, the chief executive of the luxury British brand best known for its signature check and raincoats, said sales to tourists had risen 19% in the UK in the three months to April but they had more than doubled in Paris and were up 43% in Milan.
He said total sales had risen 28% in the UK for the year as locals and visitors from Europe from the US, Asia and the Middle East spent more, but he noted a big surge in UK tourists spending in Europe, “which is quite telling”.
He said: “We are disappointed the government chose to scrap the VAT retail export scheme. It leaves the UK at a competitive disadvantage for global shoppers. We are celebrating the fact that we are a British luxury brand and very hopeful that when tourists come to the UK they are coming to Burberry. We are really hoping this [tax change] can be revisited.”
Akeroyd’s comments come after the chair of Burberry, Gerry Murphy, described Brexit as a “drag on growth” and said it had left Britain nursing the “weakest” Covid recovery among its big markets.
Murphy told the prime minister, Rishi Sunak, that a decision to remove VAT refunds in 2020 had hurt the economy and was a “spectacular own goal”.
A string of other companies, including British Airways, Mulberry and Fortnum & Mason, have bemoaned the decision and called on the chancellor, Jeremy Hunt, to reverse the decision.
The latest criticism of government policy came as Burberry reported a 10% rise in sales to £3.1bn in the year to 1 April with underlying sales growth rising to 16% in the final
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