London business advocacy group BusinessLDN has called on the Chancellor to bring back VAT-free shopping and to “keep the door open” for HS2 to be expanded to Manchester, as it focuses on what its boss calls “low-hanging fruit” in in its submissions for next month’s Autumn Statement.
The London business group has submitted 21 proposals to the Chancellor ahead of his Autumn Statement on 22 November. BusinessLDN CEO John Dickie said that these were mostly made up of proposals with a low fiscal impact that would boost efficiency, as the Government is likely to feel constrained in its ability to cut taxes or boost spending amid sky-high inflation and interest rates.
“There are some things that are very difficult unless you’re willing to spend a lot of money, but equally there’s some low-hanging fruit out there and that’s our starting point,” Dickie told the Standard.
Proposals include the restoration of VAT-free shopping, which has been a priority for BusinessLDN ever since Chancellor Jeremy Hunt axed plans to allow tourists to reclaim VAT on purchases made in the UK.
“The additional spending from this measure in restaurants, hotels and other outlets would more than compensate for the loss of VAT and deliver a significant net increase in tax revenues, making it a win-win- for business and the economy,” BusinessLDN said.
Other proposals include longer-term funding guarantees for TfL, which Dickie said would allow the capital’s transport body to plan more effectively for the future. BusinessLDN also called for the Government to “keep the door open for future expansion” of HS2, after its northern leg was scrapped last month.
“London has a key role to play in accelerating our economic recovery,” Dickie said. “The Government should ensure the capital has certainty over long-term funding so businesses can plan for the future with confidence.”
