It is time to make the most of our Brexit freedoms and abolish the tourist tax, writes former minister DAME CAROLINE DINENAGE

When it comes to attracting tourists from around the world, it's no secret that Britain is a big player. And while our weather may not be great, our culture, heritage and creativity tip the scales.

The numbers speak for themselves. Last year our little island received more than 30 million visitors. People from all over the world come here, drawn to everything from our Royal Family to the Peaky Blinders, and much more.

But the lack of a competitive tax policy for tourists means British retailers are losing out.

In fact, research from this publication shows that while spending by tourists from America in Britain last year was at an impressive 101 percent of 2019 levels, it had multiplied by a much greater amount in France, Spain and Italy.

So what happened to the much-vaunted post-Brexit freedoms that we were told would make our tourism sector one of the most competitive in the world?

It's a question I asked Rishi Sunak before Christmas, and that's why I join in calling on the Chancellor to review his tax-free shopping policy at the next Budget. The Prime Minister told me there was 'a range of different views on that policy'.

My concern is that some of these views – especially those of the Treasury Department – ​​are based on inaccurate or incomplete data. While the government previously stated that reintroducing tax-free shopping would cost the Treasury £2 billion, another analysis has shown a net benefit of hundreds of millions and up to 80,000 jobs created.

The losers from the failure to implement these policies are not only retailers, but also hospitality and entertainment venues. The total amount lost due to a lack of duty-free shopping is estimated by the Association of International Retail (AIR) to be as much as £12 billion.

Prime Minister Rishi Sunak (pictured) told Dame Caroline Dinenage there was 'a range of different views on that policy'

This is not just about attracting more people to Britain, but about encouraging visitors to come longer and spend more money, spreading the benefits of international tourism across the country and economy, so everyone wins.

As Paul Barnes, CEO of AIR, told our committee: 'Here is a potential growth measure that comes from leaving the EU. There is the potential for £12 billion of new money to come into Britain every year. It will go to all the different regions and will happen almost in the first year.”

A proper review of the policy by the Ministry of Finance could lead to the conclusion that it is 20 percent cheaper for tourists to buy luxury products in Europe.

It could also use the most up-to-date data and ask why tourism is recovering faster in our European neighbors, where tax breaks are luring people to their shores.

The strength of our culture and sensible tax policy can be tools to show the world the benefits of Brexit; we should not be shy about using them.

Dame Caroline Dinenage is the Conservative MP for Gosport.