The United Kingdom’s departure from the European Union became effective on February 1, 2020. Three years later, the effects of Brexit continue to affect all levels, as the exit led to the application of policies different from European ones, for example, in terms of tax or immigration measures.
Since then, various social agents have complained about the situation to the British government. On this occasion, Jonathan Ackroyd, executive director of high-end company Burberry, has warned that the government’s policy creating a “competitive disadvantage” For companies operating around the world. They also explained that despite the fact that sales have increased within the country, income has remained low compared to other parts of the world.
The reason for this is the abolition of VAT refund, which would be VAT in Spain for tourists. Thus, sales to foreigners in London increased by 19%, while in Paris they tripled and in Milan by 43%. at both places, Travelers Could Benefit From Tax Breaks, For the brand, the tax decision leaves the UK at a loss for buyers around the world. “We really hope that this tax change can be reviewed,” he added.
Overall, transactions in the UK have increased by 28%, due to spending by both nationals and foreigners, but Europe has seen a larger increase in spending by British tourists, “that’s quite revealing” for Ackroyd.
This statement came after the president of the same company, Gerry Murphy, described Brexit as ‘British’. a “drag on development”, A situation that has become even more apparent in the aftermath of the pandemic due to the “weak” recovery in the United Kingdom compared to other markets. He also called the VAT decision an “own target”, a complaint joined by British Airways, Mulberry and Fortnum & Mason.
FY 2022 Results
The financial results of the company have been positive, as it has a Net profit of 563 million euros, up 23.7% Compared to 2021. Similarly, it has recorded a turnover of 3,558 million Euros during the financial year 2022, which is 9.5% higher than the previous year. Much of this growth is driven by a return to activity in China in the first months of 2023.
“We delivered strong financial performance, supported by good progress across our core categories, with fourth quarter revenue accelerating in China,” said Jonathan Ackroyd.