Yahoo Finance Westfield boss backs Labour amid 'utter disappointment' in Hunt's failure to scrap 'tourist tax' in Budget
The UK boss of Westfield today became one of the highest profile business leaders in London to openly back Labour’s policies for the retail sector as he attacked the “utter disappointment” of Jeremy Hunt’s failure to restore tax free shopping for foreign tourists or reform business rates.
Scott Parsons, chief operating officer, UK at French-owned Unibail-Rodamco-Westfield, owner and operator of the Westfield London and Westfield Stratford City malls, said yesterday’s Budget was “an utter disappointment for the retail and property sectors, with no significant announcement on business rates and no U-turn on tax-free shopping for tourists.
These are clear missed opportunities especially in this all-important election year. “It’s deeply frustrating that calls from over 500 sector leaders to halt the tourist tax have been ignored, despite the compelling data which demonstrates the critical importance of tax-free shopping for the UK economy.
“What’s more, the existing business rates system places our high streets at a massive disadvantage compared to those in other European cities, with UK retailers shouldering a financial load nearly 10 times more than brands on the continent.”
He said business rates should be “permanently” lowered. Parsons added: “While Hunt has failed to deliver for the industry, in contrast, the Labour Party’s newly unveiled strategy to revitalise Britain’s high streets holds great promise. By pledging to overhaul the outdated business rates system, Labour is signalling a more encouraging future for the sector.”
His words were echoed by other business figures.
Sacha Zackariya, CEO of Prosegur ChangeGroup, a provider of ATMs, currency exchange bureaux and tax refund services, said: “The Government has just told thousands of retailers, the tourism industry and workers that they couldn’t care less about them, and condemned Central London to dozens more American candy stores.
“The tourist tax is killing jobs and sucking £11.1 billion out of the economy as tourists enjoy VAT-free shopping in the likes of Paris, Milan, and further afield.”
He added: “This was the Government’s last chance saloon to move on this before the election. If Labour are serious about growing the economy, I hope they’re taking note.”
Anda Rowland, vice-chairman of the King’s tailor, Anderson & Sheppard, said the Chancellor’s failure to restore tax-free shopping was a “bitter blow to British business”
