Britain’s response to Covid should show Brexiteers we’re not that special, so Rishi Sunak must think twice about going it alone and ditching Duty Free
It’s easy to view the Chancellor’s ending of Duty Free as a tiny issue against the wider backdrop of Brexit.
Indeed, for stock market investors, there is perhaps little to be alarmed over.
Burberry just told the Jefferies New York luxury goods summit that, while the move will cost it UK sales, it will probably make that up at its shops on the Continent as tourists go there instead.
If Burberry is thinking along these lines, you can bet the likes of LVMH and Kering are, too. Likewise Value Retail, whose Bicester Village has sister operations across Europe.
But is that really what the Chancellor was hoping for when he came up with the wheeze?
More importantly, where does he think these multinationals are likely to invest when considering asset allocation over the next decade or so?
A country struggling to get through Brexit, with the most anti-tourist tax policy in Europe?
Or Paris and Milan?
The Treasury assumes visitor numbers to the UK will barely suffer a scratch. Tourists will still flock to Britain because it’s such a great place to visit.
Perhaps, but will they still spend here like they used to? You have to doubt it, when they can get a 20% discount if they hold off until the next leg of their holiday in France.
Our Brexiteer Government seems to be run on the assumption that Britain will thrive whatever they do to it, because we are innately superior to our neighbours.
If Covid has taught us anything, it’s that this is not necessarily the case.
Some humility is overdue.
