• Across H1 2025, the lack of tax-free shopping has cost West End retailers £310 million – up 40% from £220 million in H1 2024.
• Cumulatively, since the start of 2023, this puts the cost of unrealised sales for businesses in the area at nearly £1.4 billion.
• Eight in ten (83%) West End businesses say the lack of tax-free shopping is directly damaging trading performance.

• Business representatives say the lack of tax-free shopping is stifling local and national growth and runs counter to the Government’s economic ambitions.

London, 28 August 2025 – Research released today by New West End Company has revealed that, in the first half of 2025, the absence of tax-free shopping cost West End businesses £310 million in unrealised sales. This is a 40% increase on the same period in 2024, and the largest loss across the half year since the policy was removed.

A recent survey of West End businesses underlined that the lack of tax-free shopping is a key concern, with eight in ten (83%) saying it is directly damaging trading performance. The majority (92%) West End businesses report seeing lower international spend and 81% are seeing fewer international visitors. Almost all of those surveyed (96%) believe that potential international spend in the West End is being diverted to cities like Paris and Milan.

Rising operational costs and shifting consumer patterns are exacerbating the situation, with 75% of respondents saying they are reviewing staffing levels and 50% are rethinking investment in the UK.

This is despite a continued growth of travel and shopping globally, with the World Travel and Tourism Council (WTTC), forecasting worldwide international visitor spending is set to reach $2.1 trillion in 2025, surpassing previous highs in 2019 by $164 billion.

Dee Corsi, Chief Executive of New West End Company said: “The data is clear: losing tax-free shopping is costing UK businesses, with the value of unrealised sales growing year-by-year. And with the high cost of doing business in the UK compounding the pressure, many businesses are being forced to review their staffing or investment decisions.

“But it doesn’t have to be that way. Tax-free shopping presents a rare, low-cost opportunity for the Government to back Britain’s near-term growth, create jobs, and give our businesses their competitive edge once more. Not only is the scheme understood by global consumers, backed by business. The time to act is now, before the window of opportunity closes.”