Rich Middle Eastern gamblers are being put off spending in the UK by Rishi Sunak’s tourist tax, the chief executive of one of Britain’s biggest casino chains has said.

John O’Reilly, chief executive at Rank Group, which owns Grosvenor Casinos, blamed weak sales at his London casinos on the end of VAT-free shopping in Britain.

Mr O’Reilly said the axing of the tax rebate, which occurred in 2021 when Mr Sunak was Chancellor, had put off wealthy foreigners from visiting Britain. This was having a knock-on effect as many rich tourists who come to shop visit casinos, he said.

He said: “Part of coming to London and spending your time here is to shop and dine and play the tables. The [VAT] issue hits the hospitality business just as much as it hits the retail business.”

Mr O’Reilly is the latest business leader to criticise the tourist tax. A string of retail chiefs, including the bosses of Burberry and Harrods, have blamed the policy for falling sales.