Heathrow airport bosses have urged the Chancellor to rethink the “anti-growth” tourist tax to boost Britain’s economy after the winter recession.

Europe’s largest airport called on Jeremy Hunt to reintroduce VAT-free shopping for tourists to inject fresh momentum into the economy.

Data from Visit Britain showed that spending by overseas visitors was down 10pc in real terms in the third quarter of 2023 compared to the same period four years earlier, just before the pandemic.

The airport said: “Ministers should rethink anti-growth policies like the “tourist tax” that discourage international visitors from spending in the UK; and unnecessary travel visas for transiting passengers that risk the UK’s global connectivity and Heathrow’s hub status. 

“A supportive policy environment for aviation would deliver a much-needed economic boost by encouraging people to visit, spend and do business here in the UK.”

Heathrow revealed it returned to profit as a record 18.5m passengers travelled through the airport during the first three months of the year.

In made pre-tax earnings of £189m during the first quarter, compared to a loss of £60m during the same period last year, and has raised its forecast for the total number of travellers using the hub this year to 82.4m.

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