The Newshound

Badenoch vows to scrap 'hated tourist tax' and restore VAT-free shopping to deliver £4bn high street boost

From the Newshound archive · first published 21 September 2026 · last updated 22 September 2026.

Kemi Badenoch, whose plan would initially cover non-EU tourists before potentially extending to EU visitors, promises the reinstated VAT refund scheme will deliver a £4.1bn boost to Britain's high streets.
Kemi Badenoch, whose plan would initially cover non-EU tourists before potentially extending to EU visitors, promises the reinstated VAT refund scheme will deliver a £4.1bn boost to Britain's high streets.
Harrods on Brompton Road in Knightsbridge, one of Britain's flagship luxury retail destinations, as Kemi Badenoch vows to fund the VAT refund revival through a crackdown on NHS tourism.
Harrods on Brompton Road in Knightsbridge, one of Britain's flagship luxury retail destinations, as Kemi Badenoch vows to fund the VAT refund revival through a crackdown on NHS tourism.

Kemi Badenoch has pledged to restore VAT-free shopping for overseas visitors, saying five years of sending tourists to Paris and Milan to spend their money is "more than enough." Research suggests the move could attract up to 2.35 million extra visitors and generate £4.1bn in extra high street spending. Badenoch also vowed to cut costs for retailers to support job creation, warning that rising unemployment will push more people onto welfare and make fixing the economy harder. Labour accused the Conservatives of "a spectacular U-turn," pointing out that Badenoch herself said the scheme was "a costly relief" when the previous Tory government axed it in 2021.

The scheme would be funded partly by cracking down on NHS health tourism and requiring patients to repay debts before visa renewals.

Badenoch also accused Prime Minister Andy Burnham of accepting Britain's continuing decline under Labour.

Moreretail-week.comBadenoch vows to lower retail costs and restore tax-free shoppingDaily Mail NewsI'll ditch tourist tax to boost Britain: Kemi vows to bring back VAT-free shopping for UK visitors and get country's ailing economy firing againBBC News - BusinessTories pledge to bring back tax-free shopping for tourists
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