The decision made by Chancellor Rishi Sunak to scrap the VAT refund for tourists has been met with criticism from luxury retailer Burberry's chairman, Gerry Murphy. Speaking at the Business Connect event, Murphy urged the Prime Minister to reverse the decision, describing it as a "spectacular own goal". He went on to criticize the move, stating that it made the UK the "least attractive shopping destination in Europe" on the day that the country left the single market.
Murphy also commented on the impact of leaving the EU, stating that it has had a "significant friction effect on trade" and that the UK is experiencing the "weakest recovery" after the pandemic among major economies. He urged the government to make changes to improve the UK's attractiveness as a shopping destination and to help support businesses during this difficult time.
In response, the Prime Minister stated that he was "here to listen" and that the government would take Murphy's comments on board. The decision to scrap the VAT refund for tourists has been met with widespread criticism from the retail industry, with many arguing that it will have a negative impact on the sector's recovery from the pandemic. It remains to be seen whether the government will take action to reverse the decision and support the industry's recovery efforts.