This compares with £400m unrealised gross sales in 2023, in accordance with New West Finish Firm, which represents 600 companies within the district.
The commerce physique stated home spending dropped 2.2% yr on yr in November and December. Nevertheless, purchases by worldwide guests throughout the festive interval rose 3.5%, pushed by vacationers from the US, Saudi Arabia and Germany.
New West Finish Firm cited information from International Blue, which has proven retailer gross sales in Europe had a 16% year-on-year gross sales improve in November and a 20% rise in December.
In most European nations, worldwide guests can declare as much as 20% tax reduction on spending.
Dee Corsi, CEO of New West Finish Firm, stated: “Worldwide guests are desperate to spend, at a time when home spend is declining, however and not using a strong tourism technique, we’re dropping out to our European rivals – to the tune of £640m in a yr.
“The federal government has simply introduced assist for Heathrow’s third runway. And but insurance policies like lack of tax-free purchasing stay hindrances of their development agenda. We’d like daring motion to unlock the complete potential of worldwide spend, if we’re to get well to pre-pandemic ranges and obtain development.”
The UK’s tax-free purchasing scheme, which allowed worldwide guests to reclaim 20% VAT on purchases, was scrapped in January 2021 by then chancellor Rishi Sunak.
