Kurt Geiger’s chief executive Neil Clifford has joined the growing chorus of retailers calling for a return of tax-free shopping in the UK ahead of October’s first new-government budget.

Clifford said the end of tax-free shopping for tourists is “having a “massively negative effect” on spending in Britain, and that the government “is shooting itself in the foot by not bringing back the perk”, reported The Times newspaper.

He noted that travellers are spending less time in London in favour of other European destinations following the end of the VAT retail export scheme in Britain in 2021.

“International tourists, whether it be Middle Eastern or American travellers, are spending less time in London,” Clifford said. “If you go to Milan or Paris or Madrid — my team and I are in those markets often — there’s no doubt they’re busier.”

Kurt Geiger is owned by Cinven, the private equity firm, and also operates in Europe, the US, China, Australia and the Middle East.

Clifford, boss of the company since 2003, lamented a “real shooting ourselves in the foot strategy” by the previous Conservative government to remove the shopping perk. “It really affected London, but actually right across the UK we saw that negative impact almost immediately. It is still having a massively negative effect.”

Although the previous government claimed that restoring the scheme would cost £2 billion, analysis by the Centre for Economics and Business Research also found that the removal of tax-free shopping had deterred two million tourists a year from visiting the UK and was costing £11.1bn in lost GDP.

Caroline Rush, chief executive of the British Fashion Council said recently that the data showed that reintroducing the scheme would “not only support the sector, it would reinvigorate retail, hospitality and tourism and change the narrative of the UK post-Brexit. It would be a fantastic win.”

Further support includes executives from Harrods, Selfridges and Burberry, all expressing their disappointment that the industry’s calls have been ignored. 

Meanwhile, bosses at Heathrow airport have also accused the government of “curtailing” the UK aviation industry’s global competitiveness by not listening to businesses.

A Treasury spokesman told the newspaper: “Following the spending audit, the chancellor has been clear that difficult decisions lie ahead on spending, welfare and tax to fix the foundations of our economy and address the £22 billion hole in the public finances left by the last government. Decisions on how to do that will be taken at the budget in the round.”