This article will be discussing firms in the UK applying pressure on the Labour party to drop tourist tax, the boost that Lidl has provided to Northern Ireland’s economy and retailers’ responses to an increase in sales.

Lidl Northern Ireland’s £360 Million Boost to the Local Economy

Lidl is a German International supermarket with close to 10,000 stores in the USA and Europe including many locations dotted around the UK.

Reportedly in 2023, UK retailer Lidl Northern Ireland reportedly helped inject £360 Million into their local economy. This is a new record and according to an article by Farming Life Lidl Northern Ireland have announced that an £150 Million investment has been made in the company to provide more stores across new locations amongst the towns and cities within the region.

This is sure to positively impact their local economy and their plan also focuses on ways to improve current stores, not just newly established ones.

Lidl Northern Ireland’s £360 Million investment, which was double of its yearly economic input over the past half decade. Their decision also helped to support over 7,000 jobs across the nation.

UK Firms Adamant that Labour should Scrap the Tourist Tax

What is Tourist Tax and its Purpose?

A tourist tax is a levy imposed on international visitors that reside in commercial accommodations such as hotels.Tourist taxes are imposed to generate revenue for local governments and can be put towards things like maintaining historical sites

In the lead up to the UK July general election many retail executives from leading UK firms such as Marks and Spencers (M&S) and Selfridges have urged the Labour to scrap the ‘tourist tax’ if they were to win the election.They have said that re-introducing tax-free shopping would stimulate growth in the United Kingdom’s economy.

The Recent History of this Economic Policy

Current UK Prime Minister and Conservative Party Leader Rishi Sunak was the one to axe tourist’s tax free shopping sprees back in 2021.

Many firms are unhappy with The Conservative Party’s decision and are hoping for at least some sort of re-evaluation of their policy. For example, Sir Rocco Forte, Chairperson of Rocco Forte Hotels has said that not removing the policy would be ‘a complete mockery’ of Labour’s previously established economic policies.

Managing Director of Marks and Spencer (M&S) Stuart Machin has described the issue to be “…harming our economy at a time when London’s major shopping streets need to encourage shoppers back”

Retailers Thrilled about the UK Economy’s Gradual Recovery

Many major UK retailers have become optimistic as signs of economic recovery have become more and more apparent in their sales. Some of these companies include WHS Smith, B&M and Zara.

According to an article by This is Money reports that Inditex, the multinational clothing store that owns brands such as Bershka and Stradivarius, has reported that between the 1st of May and 3rd June this year there has been a 12% sales increase and group margins have grown by 13% when compared to a year ago.
Intidex currently has close to 6,000 stores and theirChief Executive says that they aim to increase selling space by about 5% every year until 2026 after they have developed and seen the opening of stores in numerous markets. The company is also moving in the direction to invest £1.5 Billion to aid warehouses in the influx of their new sales.