The boss of Cheltenham-based Superdry has warned that tourists will splash their cash in Europe rather than the UK.

Julian Dunkerton said high-spending international tourists will travel to Europe to go shopping, because Britain no longer offers tax-free purchases to international tourists, as reported by the BBC.

Under the VAT Retail Export Scheme, non-EU visitors to Europe can recover the VAT on high street purchases. But the scheme was withdrawn in the UK in January 2021, after Brexit.

Mr Dunkerton said Europe is busy, with tourists doing their luxury shopping in France rather than the UK.

He told Radio 4 that Brits can get a tax-free deal on a high-ticket item in France, so in some cases it would be cheaper to get on a plane to shop in mainland Europe than it is to shop at home.

The VAT Retail Export Scheme benefitted tourist hotspots like London and Edinburgh, as well as the high-end shopping outlet Bicester Village in Oxfordshire.