Britons are racking up VAT-free shopping bill on Continent of £742M

British shoppers are deserting UK stores and flocking to the EU to benefit from tax-free shopping.

VAT-free spending on the Continent by Britons increased fivefold from 2021 to £742 million last year, Association of International Retail (AIR) data shows.

The figures pile fresh pressure on ministers to reintroduce tax-free shopping for international visitors to the UK. Rishi Sunak scrapped it in 2021.

But the move enraged many businesses, and the Mail’s Scrap The Tourist Tax campaign was launched in support of calls for it to be reintroduced.

Campaigners believe that the decision to axe the scheme is driving tourists away from London and Edinburgh to cities such as Paris, Madrid and Milan.