This is the British brand denouncing the “competitive disadvantage” of post-Brexit
On February 1, 2020, the United Kingdom’s exit from the European Union became effective. Three years later, the effects of Britain’s exit from the European Union continue to affect all levels, as the exit led to the implementation of policies different from European ones, for example, in terms of taxation or immigration procedures.
Since then, many social agents have complained about the attitude of the British government. On this occasion, Jonathan Akeroyd, CEO of high-end Burberry, warned that it was government policy cause a “competitive disadvantage” For companies operating all over the world. He also explained that although sales within the country increased, the income was lower compared to other parts of the world.
The reason is to cancel the return of the value added tax, which would be the value added tax in Spain, for tourists. Thus, sales to foreigners increased by 19% in London, while in Paris they tripled, and in Milan they increased by 43%. in both places, Travelers can take advantage of tax breaks. For the brand, the tax decision leaves the UK at a disadvantage to shoppers around the world. “We really hope that this tax change can be reviewed,” he adds.
In all, transactions in the UK increased by 28% due to the spending of both nationals and foreigners, but saw a significant increase in the spending of British tourists in Europe, “Which is quite revealing.” for Aceroid.
These statements came after the head of this same company, Jerry Murphy, described Brexit ‘a hindrance to growth’. The situation became more pronounced post-pandemic, due to a “weaker” recovery in the UK than in other markets. He also called the VAT decision a “special target”, a complaint joined by British Airways, Mulberry and Fortnum & Mason.
Results for the fiscal year 2022
The company’s economic results were positive Net profit of 563 million euros, up 23.7% compared to 2021. Likewise, it recorded a turnover of 3,558 million euros during the 2022 financial year, up 9.5% over the previous year. Much of this increase is due to the pickup in activity in China in the early months of 2023.
“We delivered a strong financial performance, supported by good progress in our core categories, with revenue accelerating in the fourth quarter as growth picked up in China,” said Jonathan Akeroyd.
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