On 1 February 2020, the United Kingdom’s exit from the European Union became effective. Three years later, the effects of Brexit continue to affect all levels, as an exit leads to the adoption of policies that differ from European ones, for example in terms of taxes or immigration measures.

Since then, various social agencies have complained about the position of the British Government. On this occasion, Jonathan Akeroyd, executive director of the high-end company Burberry, reminded that government policy causing a “competitive disadvantage” for companies operating around the world. He also explained that, although sales in the country have increased, revenues have been lower compared to other parts of the world.

The reason for this was the abolition of returning VAT, which would be VAT in Spain, to tourists. Thus, sales to foreigners have increased by 19% in London, while those in Paris have tripled and Milan have increased by 43%. In both places, tourists can benefit from tax breaks. For the brand, the tax decision puts the UK at a disadvantage for buyers around the world. “We really hope that this tax change can be reviewed again,” he added.

In total, transactions within the UK increased by 28% due to spending by nationals and foreigners, but there has been a large increase in spending by British tourists in Europe, “quite open” for Akroyd.

This statement comes after the president of the same company, Gerry Murphy, described Brexit as “stunt growth”. A situation that has become increasingly visible after the pandemic, due to a “weaker” recovery in the UK than other markets. He also called the VAT decision an “own goal”, a complaint that was joined by British Airways, Mulberry and Fortnum & Mason.

Fiscal 2022 results

The company’s economic results have been positive, because it has obtained a net profit of 563 million euros, 23.7% more compared to 2021. Similarly, it has recorded a turnover of 3.558 million euros during the fiscal year 2022, 9.5% more than the previous year. Much of this increase was driven by a rebound in activity in China in the first months of 2023.

“We have delivered a strong financial performance, supported by good progress in our core categories, with revenue accelerating in the fourth quarter as growth picks up in China,” said Jonathan Akeroyd.